two effects interact, as we demonstrate. We use a three-region world model as a framework for alternative steady … reveals potential quantitatively significant benefits for the euro area, at the cost of the US and (to a lesser degree) Japan …

We propose a simple model of the international monetary system. We study the world supply and demand for reserve assets … denominated in different currencies under a variety of scenarios: a Hegemon vs. a multipolar world; abundant vs. scarce reserve … instability of the system, as well as the common prediction regarding the natural and beneficial emergence of a multipolar world …

and its possible ascension to reserve currency status. In an unstable and financially integrated world, governments …' precautionary demand for reserve assets is likely to increase. But the world then risks a third crisis of the global reserve system …, another re-run of the Triffin paradox, with an ever-growing emerging-world insurance demand loaded onto a small group of ever …

currencies for much of the world. Our discussion encompasses the history of anchor currency choice, methods for classifying …