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Federal Reserve Policy in an International Context

Author

Listed:
  • Ben S Bernanke

    (Brookings Institution)

Abstract

Abstract In the postcrisis period, some foreign policymakers accused the Federal Reserve of engaging in “currency wars” and inadvertently creating “financial spillovers,” arguing that these were especially consequential given the dominant role of the U.S. dollar in international trade and finance. This lecture analyzes these critiques, and argues: (1) little support exists, either theoretical or empirical, for the currency wars claim; (2) the United States and its trading partners should use nonmonetary tools for dealing with spillovers; and (3) the benefits of the dollar standard to the United States and the world are considerably more symmetric than in the Bretton Woods era.

Suggested Citation

  • Ben S Bernanke, 2017. "Federal Reserve Policy in an International Context," IMF Economic Review, Palgrave Macmillan;International Monetary Fund, vol. 65(1), pages 1-32, April.
  • Handle: RePEc:pal:imfecr:v:65:y:2017:i:1:d:10.1057_imfer.2016.8
    DOI: 10.1057/imfer.2016.8
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    References listed on IDEAS

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    Cited by:

    1. repec:eee:jimfin:v:85:y:2018:i:c:p:20-39 is not listed on IDEAS
    2. Max Hanisch, 2017. "US Monetary Policy and the Euro Area," Discussion Papers of DIW Berlin 1701, DIW Berlin, German Institute for Economic Research.
    3. repec:chb:bcchsb:v25c08pp279-324 is not listed on IDEAS
    4. Ligonniere, Samuel, 2018. "Trilemma, dilemma and global players," Journal of International Money and Finance, Elsevier, vol. 85(C), pages 20-39.

    More about this item

    Keywords

    E52; F33; F42;

    JEL classification:

    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions
    • F42 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - International Policy Coordination and Transmission

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