A Bank of Japan paper released this month posits that the United States' so-called "exorbitant privilege", garnered from the dollar's status as the global reserve currency, implies an "exorbitant duty" to the rest of the world.

The paper notes that in exchange for having its external borrowing constraint significantly weakened by the dollar's reserve currency role, the United States must provide insurance to the rest of the world.

During the crisis, the Federal Reserve provided swap lines to a