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Dominant Currency Paradigm: A Review / Gita Gopinath, Oleg Itskhoki.

NBER Working papers Available online

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Format:
Book
Author/Creator:
Gopinath, Gita.
Contributor:
National Bureau of Economic Research.
Itskhoki, Oleg.
Series:
Working Paper Series (National Bureau of Economic Research) no. w29556.
NBER working paper series no. w29556
Language:
English
Physical Description:
1 online resource: illustrations (black and white);
Place of Publication:
Cambridge, Mass. National Bureau of Economic Research 2021.
Summary:
A handful of currencies, especially the US dollar, play a dominant role in international trade. We survey the active theoretical and empirical literature that documents patterns of currency use in global trade, the implications of dominant currencies for international transmission of shocks, exchange rate pass-through, expenditure switching, and optimal monetary policy. We describe advances in the endogenous currency choice literature including conditions for the emergence and persistence of dominant currency equilibria.
Notes:
Print version record
December 2021.

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