Dollar still ‘special’ but Treasuries losing shine – NBER paper
Authors show ‘strong divergence’ between global roles of greenback and US government bonds
The dollar has retained its “special role” in the international monetary system, but US Treasuries are not as special as they once were, new research has found.
The working paper, published this week by the US National Bureau of Economic Research, analyses the “convenience yields” of the dollar and US Treasuries relative to other currencies and government bond markets.
The authors – Wenxin Du, Ritt Keerati and Jesse Schreger – measure this using deviations from covered interest parity in money
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