‘Key currencies’ affect patterns of global imbalances – BIS paper

dollars-perspective

Thinking about currency “zones” instead of currencies themselves can shed important light on global imbalances, according to research published by the Bank for International Settlements.

Robert McCauley and Hiro Ito divide the world into zones according to the co-movement of national currencies with a set of “key currencies”. The “dollar zone” accounts for “well over” half of global GDP.

Thinking about the world in this way changes the perspective on global imbalances, they write in the

To continue reading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: