This chapter explores Keynes’s monetary thought with a focus on financial instability and crises. Keynes’s early monetary work, Indian Currency and Finance (1913), shows his keen concerns for financial instabilities and his appreciation of central banks’ lender-of-last-resort role. In his...

Spätestens seit dem Ende des 2. Weltkriegs ist der US Dollar die führende Reservewährung der Welt. Allerdings hat sich die Natur der globalen Hegemonie des US Dollar im Zeitalter des Neoliberalismus und Finanzglobalisierung stark gewandelt. Die Krise von 2007-9 brachte für die...

This paper sets out to investigate the forces behind the so-called global capital flows paradoxʺ and related dollar glutʺ observed in the era of advancing financial globalization. The supposed paradox is that the developing world has increasingly come to pursue policies that result in current...

Following an analysis of the forces behind the global capital flows paradoxʺ observed in the era of advancing financial globalization, this paper sets out to investigate the opportunity costs of self-insurance through precautionary reserve holdings. We reject the idea of reserves as low-cost...