Over 85% of all foreign exchange (FX) transactions involve the US dollar. I show that the US dollar dominates FX … trading volume because of strategic avoidance of price impact. To demonstrate this, I leverage the fact that non-dollar … currency pairs can be traded indirectly by using the US dollar as an intermediate vehicle currency. I present a model of FX …

dollar ; euro ; German dominance hypothesis …This paper assesses whether the international monetary system is already tripolar and centred around the US dollar, the … euro and the Chinese renminbi (RMB). It focuses on what we call China's "dominance hypothesis", i.e. whether the renminbi …

This paper applies a recent method proposed by Maggiori (The U.S. Dollar Safety Premium, 2013) to estimate the Swiss …

yield that periods of strong comovements of the US dollar and Pound sterling based upon the Euro prevail during the 1990s … and periods of comovements of Euro and Pound sterling denominated in US dollar prevail since the introduction of the Euro …

This paper studies the dynamics of volatility transmission between Central European currencies and euro/dollar foreign … significant spillovers running from euro/dollar to the Central European foreign exchange markets. To measure the overall magnitude …

This study aims to evaluate the impact of major and minor changes in the Euro Zone and US interest rates on the EUR …

This paper establishes a causal link between the dollar exchange rate and international trade flows, employing a new … instrument for the U.S. Dollar that is based on domestic U.S. housing activity (Ma and Zhang (2019)). In line with the dominant … U.S. dollar. Once we instrument the dollar, we find evidence for perfect pass-through of the dollar exchange rate to …