Bulletin n. 2/2016
December 2016
INDICE
  • Section A) The theory and practise of the federal states and multi-level systems of government
  • Section B) Global governance and international organizations
  • Section C) Regional integration processes
  • Section D) Federalism as a political idea
  • Barry Eichengreen, Livia Chiţu, Arnaud Mehl
    Stability or Upheaval? The Currency Composition of International Reserves in the Long Run
    in IMF Economic Review , Volume 64, Issue 2 ,  2016 ,  354-380
    The paper analyzes how the role of different national currencies as international reserves was affected by the shift from fixed to flexible exchange rates. It extends data on the currency composition of foreign reserves backward and forward to investigate whether there was a shift in the determinants of the currency composition of international reserves around the breakdown of Bretton Woods. It finds that inertia and policy-credibility effects in international reserve currency choice have become stronger post-Bretton Woods, while network effects appear to have weakened. The paper shows that negative policy interventions designed to discourage international use of a currency have been more effective than positive interventions to encourage its use. These findings speak to the prospects of currencies like the euro and the renminbi seeking to acquire international reserve status and others like the U.S. dollar seeking to preserve it.
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