The Rise of the Dollar and Fall of the Euro as International Currencies
- (pp. 521-26)
Abstract
International currencies play important roles as foreign exchange reserves but are also most frequently used to denominate corporate and government bonds, bank loans, and import and export invoices. These currencies offer unrivaled liquidity, constituting large shares of the volume on global foreign exchange markets, and are commonly chosen as the anchors targeted by countries with pegged or managed exchange rate regimes. We provide evidence suggesting a recent rise in the use of the dollar, and fall of the use of the euro, with similar patterns manifesting across all these aspects of international currency use.Citation
Maggiori, Matteo, Brent Neiman, and Jesse Schreger. 2019. "The Rise of the Dollar and Fall of the Euro as International Currencies." AEA Papers and Proceedings, 109: 521-26. DOI: 10.1257/pandp.20191007Additional Materials
JEL Classification
- E42 Monetary Systems; Standards; Regimes; Government and the Monetary System; Payment Systems
- F31 Foreign Exchange
- F33 International Monetary Arrangements and Institutions