Home  |  Login


Policy Papers

International Monetary System and Global Financial Cycles
Paolo Baffi Lecture

Rey, H.


Abstract:
This lecture describes how the current international monetary system work. The dollar is the hegemonic currency, the United States plays the role of a world banker and insurer, there are global financial cycles that affect domestic financial systems, even for countries who have floating exchange rate regimes. In such a world we should have macroprudential policies as sophisticated as inflation targeting policies. The international monetary system is not stable as we may be facing a new Triffin dilemma. I speculate that world powers could compete using increasingly sophisticated cross-border payment technologies to expand the network of countries under their monetary and financial influence. This could have profound geopolitical implications.



Search Google Scholar for this entry

*ERC Advanced Grant INFIMOP




Copyright © 2021   Helene Rey     Website Terms & Conditions Website Design & Development for Academics By VisioSoft T&C
User Guide 12