This paper provides insights into the historical inefficiencies and instabilities of the international monetary system, spanning from the gold standard to modern "paper" currency systems. It analyzes the historical limited supply of safe assets within the reserve currency, as indicated by positive liquidity premia, both from government and private issuance. Additionally, it explores the macroeconomic and financial instabilities of shortages in the supply of safe assets with respect to the challenges of stabilizing inflation and economic activity. Innovations stemming from the competition of cryptocurrencies and the associated blockchain technology hold the potential for improving these outcomes.

The International Supply of Reserve Currency / Benigno, Pierpaolo. - In: IMF ECONOMIC REVIEW. - ISSN 2041-4161. - (In corso di stampa), pp. "-"-"-". [10.1057/s41308-024-00245-y]

The International Supply of Reserve Currency

Benigno P.
In corso di stampa

Abstract

This paper provides insights into the historical inefficiencies and instabilities of the international monetary system, spanning from the gold standard to modern "paper" currency systems. It analyzes the historical limited supply of safe assets within the reserve currency, as indicated by positive liquidity premia, both from government and private issuance. Additionally, it explores the macroeconomic and financial instabilities of shortages in the supply of safe assets with respect to the challenges of stabilizing inflation and economic activity. Innovations stemming from the competition of cryptocurrencies and the associated blockchain technology hold the potential for improving these outcomes.
In corso di stampa
F30, F33
The International Supply of Reserve Currency / Benigno, Pierpaolo. - In: IMF ECONOMIC REVIEW. - ISSN 2041-4161. - (In corso di stampa), pp. "-"-"-". [10.1057/s41308-024-00245-y]
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11385/240718
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