IDEAS home Printed from
MyIDEAS: Login to save this article or follow this journal

International monetary asymmetries and the central bank

  • Angel García Banchs
  • Luis Mata Mollejas
Registered author(s):

    In this paper, we argue that the current international monetary system is fully asymmetric, as it divides the world among reserve issuing economies (RIEs) and reserve earning economies (REEs). Thus, monetary theory, we argue, should take into account whether or not the central bank issues an international reserve currency, as that would largely determine its balance sheet structure, interest rate-targeting procedure, and the elasticity of monetary policy and of the exchange rate regime. The reason is plain: as opposed to RIEs, the central bank in REEs must target a minimum stock of foreign currency assets, as the local currency does not circulate abroad.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL:
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

    Article provided by M.E. Sharpe, Inc. in its journal Journal of Post Keynesian Economics.

    Volume (Year): 32 (2010)
    Issue (Month): 3 (April)
    Pages: 467-496

    in new window

    Handle: RePEc:mes:postke:v:32:y:2010:i:3:p:467-496
    Contact details of provider: Web page:

    No references listed on IDEAS
    You can help add them by filling out this form.

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:mes:postke:v:32:y:2010:i:3:p:467-496. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Chris Nguyen)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.