Has the US dollar delivered the benefits that the rest of the world is expecting from its holdings of international liquidity? US government debt has been liquid and safe, and it is supplied in sufficient quantity. But it has given a low return to the countries that accumulated the most...

In the past decade, some observers have noted an unusual aspect of the Mexican peso’s behavior: During periods when the U.S. dollar has risen (fallen) against other major currencies such as the euro, the peso has risen (fallen) against the dollar. Very few other currencies display this...

China has by far the largest foreign exchage reserves in the world. This article contributes to the understanding of this extraordinary phenomenon. Before the financial crisis the economic relationship between China and the U.S. always seemed harmonious. The United States was the main export-...