INTERNATIONAL LIQUIDITY AND THE BALANCE OF PAYMENTS OF A RESERVE-CURRENCY COUNTRY

2019 ◽  
pp. 115-129
Author(s):  
Peter B. Kenen
Keyword(s):  
Balance Of Payments ◽  
Reserve Currency ◽  
International Liquidity

scholarly journals International Monetary Relations: Taking Finance Seriously

2017 ◽  
Vol 31 (3) ◽  
pp. 3-28 ◽  
Author(s):  
Maurice Obstfeld ◽  
Alan M. Taylor
Keyword(s):  
Exchange Rates ◽  
International System ◽  
Current System ◽  
International Monetary System ◽  
Balance Of Payments ◽  
Minimal Risk ◽  
International Liquidity ◽  
Monetary System ◽  
Financial Conditions ◽  
Monetary Relations

In this essay, we highlight the interactions of the international monetary system with financial conditions, not just with the output, inflation, and balance of payments goals usually discussed. We review how financial conditions and outright financial crises have posed difficulties for each of the main international monetary systems in the last 150 years or so: the gold standard, the interwar period, the Bretton Woods system, and the current system of floating exchange rates. We argue that even as the world economy has evolved and sentiments have shifted among widely different policy regimes, there remain three fundamental challenges for any international monetary and financial system: How should exchange rates between national currencies be determined? How can countries with balance of payments deficits reduce these without sharply contracting their economies and with minimal risk of possible negative spillovers abroad? How can the international system ensure that countries have access to an adequate supply of international liquidity—financial resources generally acceptable to foreigners in all circumstances? In concluding, we evaluate how the current international monetary system answers these questions.

International Liquidity in a Multipolar World

2012 ◽  
Vol 102 (3) ◽  
pp. 207-212 ◽  
Author(s):  
Barry Eichengreen
Keyword(s):  
United States ◽  
Emerging Markets ◽  
Financial Markets ◽  
Financial System ◽  
The United States ◽  
Reserve Currency ◽  
International Liquidity ◽  
International Transactions ◽  
The U.S

Today's global monetary and financial system, to a remarkable extent, continues to rely on the U.S. dollar for international liquidity. This reflects the currency's historic role, the liquidity of American financial markets, and the absence of alternatives. But with the emergence of emerging markets, the capacity of the United States to provide safe assets will be outstripped by the growth of international transactions. It is thus likely that other large economies, presumably Europe and China, will eventually join the United States as sources of international liquidity and that other currencies will come to share the dollar's reserve-currency status.

scholarly journals Growth and convergence/divergence in productivity under balance-of-payments constraint

2011 ◽  
Vol 70 (275) ◽  
Author(s):  
Esteban Pérez Caldentey ◽  
Anesa Ali
Keyword(s):  
Balance Of Payments ◽  
International Reserve ◽  
Reserve Currency

<p class="p1">This paper presents a model of convergence/divergence in productivity for</p><p class="p1">two economies of different size and development. More precisely the model</p><p class="p1">postulates the existence of leader and follower economies. The leader has</p><p class="p1">higher levels of productivity and is technologically more advanced. The</p><p class="p1">follower economy is closely linked to the leader economy. Finally, the leader</p><p class="p1">economy issues the international reserve currency.</p>

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