Trade Invoicing, Bank Funding, and Central Bank Reserve Holdings

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Trade Invoicing, Bank Funding, and Central Bank Reserve Holdings

In recent work (Gopinath and Stein 2017), we explore how a currency like the dollar can become entrenched as a dominant global currency, focusing on the two-way feedback between trade invoicing and banking structure. The basic idea is that when a larger share of a country’s imports are invoiced in dollars, its citizens have a greater demand for dollar-denominated safe claims. This in turn leads...

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ژورنال

عنوان ژورنال: AEA Papers and Proceedings

سال: 2018

ISSN: 2574-0768,2574-0776

DOI: 10.1257/pandp.20181065