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Current account balance and dollar standard: Exploring the linkages

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  • Steiner, Andreas

Abstract

This paper examines whether the international role of the dollar as main global reserve currency has contributed to persistent current account imbalances. To this end, we analyse how central banks' accumulation of reserve assets affects the current account balance of both reserve-accumulating and reserve-providing countries.

Suggested Citation

  • Steiner, Andreas, 2014. "Current account balance and dollar standard: Exploring the linkages," Journal of International Money and Finance, Elsevier, vol. 41(C), pages 65-94.
  • Handle: RePEc:eee:jimfin:v:41:y:2014:i:c:p:65-94
    DOI: 10.1016/j.jimonfin.2013.10.005
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    1. repec:bla:worlde:v:41:y:2018:i:10:p:2691-2708 is not listed on IDEAS
    2. Gnimassoun, Blaise, 2015. "The importance of the exchange rate regime in limiting current account imbalances in sub-Saharan African countries," Journal of International Money and Finance, Elsevier, vol. 53(C), pages 36-74.
    3. Michael Bordo & Robert N McCauley, 2017. "Triffin: dilemma or myth?," BIS Working Papers 684, Bank for International Settlements.
    4. Michael D. Bordo & Robert N. McCauley, 2016. "The Current Account Version of the Triffin Dilemma," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 44(2), pages 171-182, June.
    5. Steiner, Andreas, 2017. "Determinants of the Public Budget Balance: The Role of Official Capital Flows," Annual Conference 2017 (Vienna): Alternative Structures for Money and Banking 168184, Verein für Socialpolitik / German Economic Association.
    6. Ponomarenko, Alexey, 2019. "Do sterilized foreign exchange interventions create money?," Journal of Asian Economics, Elsevier, vol. 62(C), pages 1-16.

    More about this item

    Keywords

    Reserve currency; Global imbalances; Current account; International monetary system;

    JEL classification:

    • F31 - International Economics - - International Finance - - - Foreign Exchange
    • F32 - International Economics - - International Finance - - - Current Account Adjustment; Short-term Capital Movements
    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
    • F42 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - International Policy Coordination and Transmission
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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