Facing a shortage of U.S. dollars and a growing need to support their dollar-denominated assets during the financial … analysis of the ensuing strains in the swap market shows that the dollar "basis"--the premium international institutions pay … for dollar funding--became persistently large and positive, chiefly as a result of the higher funding costs paid by …

delivered a currency that retains its purchasing power at least as well as the dollar, there are at least three reasons why the … euro is unlikely to displace the dollar as the dominant international currency in the near term. First, the growth …

delivered a currency that retains its purchasing power at least as well as the dollar, there are at least three reasons why the … euro is unlikely to displace the dollar as the dominant international currency in the near term. First, the growth …

depreciation of the dollar, as stressed in research by Obstfeld and Rogoff. We assess how the adjustment is affected by the high … not matched. In particular, a dollar depreciation generates valuation gains for the United States by boosting the dollar …. Intuitively, the valuation gains from the depreciation of the dollar allow the United States to finance ongoing, albeit shrinking …

With the U.S. trade deficit at high levels, many look to a dollar depreciation to curb the U.S. appetite for foreign … goods by pushing up the cost of imports. Yet three factors -- the use of the dollar in invoicing U.S. trade, the market … reduce demand significantly. Evidence suggests that a weaker dollar will boost foreign demand for U.S. exports, but this …

The U.S. dollar plays a key role in international trade invoicing along two complementary dimensions. First, most U …