Clamoring for greenbacks: Explaining the resurgence of the U.S. dollar in international debt

Autor:	Hiro Ito, Cesar Briso Rodriguez
Rok vydání:	2020
Předmět:	050208 finance media_common.quotation_subject 05 social sciences Geography Planning and Development U.S. Dollar Index Monetary economics International economics Development External debt Foreign-exchange reserves Currency Reserve currency Debt 0502 economics and business Liberian dollar Economics Internal debt 050207 economics Finance media_common
Zdroj:	International Finance. 23:370-391
ISSN:	1468-2362 1367-0271
Popis:	This paper characterizes trends of the shares of the U.S. dollar, the euro, and total foreign currencies in international debt denomination over the last two decades. We find that countries with a high output growth trend, greater financial development, better fiscal conditions, and more investment opportunities tend to decrease the extent of their reliance on the dollar, but increase that on the euro, while their dependency on total foreign currencies remains unaffected. Stronger trade ties with the United States (the euro area) contribute to a higher dollar (euro) share in the currency denomination of international debt securities. We also find that absent from the global financial crisis (GFC), the dollar (euro) share in debt denomination would have been higher (lower) than the observed shares in the postcrisis period. That suggests that the outbreak of the GFC increased the demand for the dollar as a safe haven.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::a0319cff2b59eba5da0e7f3dd730c927 https://doi.org/10.1111/infi.12370 Zobrazit plný text záznamu Plný text ve formátu PDF Plný text ve formátu HTML
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