International Sanctions and Dollar Dominance / Javier Bianchi, César Sosa-Padilla.

Format:

Book

Author/Creator:

Bianchi, Javier.

Contributor:

National Bureau of Economic Research.

Sosa-Padilla, César.

Series:

Working Paper Series (National Bureau of Economic Research) no. w31024.

NBER working paper series no. w31024

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2023.

Summary:

We propose a simple monetary model to investigate the implications of international financial sanctions for the reserve currency status of the US dollar. We show how the anticipation of financial sanctions can reduce the US dollar convenience yield and the holdings of US dollar reserves. We also evaluate the implications for welfare and show that they are generally detrimental for all countries.

Notes:

Print version record

March 2023.