Since end-March, 10y US yields have increased 76bp, more than in other G7 markets (Figure 1), and a dollar index relative to major currencies indeed weakened 7.5%, (13.8% relative to developing countries, Figure 2). In this note, we argue that the narrowing of the US current account (CA) deficit...

Different export-pricing currency paradigms have different implications for a host of issues that are critical for policymakers such as business cycle co-movement, optimal monetary policy, optimum currency areas and international monetary policy co-ordination. Unfortunately, the literature has...