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The international role of the dollar: Does it matter if this changes?

  • Linda S. Goldberg

There is often speculation that the international roles of currencies may be changing. This paper presents the current status of these roles. The U.S. dollar continues to be the dominant currency across various uses. Yet, such a role may change over time. If this occurs, there could be consequences for seignorage returns, U.S. funding costs, the dollar’s value, U.S. insulation from foreign shocks, and U.S. global influence. The paper concludes with a discussion of recent research on related themes and questions for future study.

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Paper provided by Federal Reserve Bank of New York in its series Staff Reports with number 522.

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Date of creation: 2011
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Handle: RePEc:fip:fednsr:522
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  17. Friberg, Richard, 1998. "In which currency should exporters set their prices?," Journal of International Economics, Elsevier, vol. 45(1), pages 59-76, June.
  18. Eichengreen, Barry, 2011. "Exorbitant Privilege: The Rise and Fall of the Dollar," OUP Catalogue, Oxford University Press, number 9780199596713, December.
  19. Linda S. Goldberg & Eleanor Wiske Dillon, 2007. "Why a dollar depreciation may not close the U.S. trade deficit," Current Issues in Economics and Finance, Federal Reserve Bank of New York, vol. 13(Jun).
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