Robert McCauley on the Global Domain of the Dollar and Threats to Its Dominance
Macro Musings with David Beckworth
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The Absorbent Privilege Is Not Exorbitant
There is not a lot of evidence that the econometric passes on the question of what should the US current account deficit be. It is bigger than the cross sectional and time series analysis would suggest. So it's not at all obvious that foreign central bank buying of the dollar, which tends to happen in fact when the dollar is weak is not associated with pushing the dollar stronger. The other things that people think of with the absorbent privilege or people holding hundred dollar bills outside the United States are certainly a gift but it's a very tiny gift.
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