The U.S. Dollar as a Dominant Currency

Description

This writing assignment asks you to assess the prospects for the U.S. dollar to remain a dominant vehicle and reserve

currency and the resulting “exorbitant privilege.” There is no unique theory or conceptual model for the assessment, and

there is no single data perspective. Make as compelling an argument as possible.

In your paper,

1) write an opening paragraph that defines vehicle and reserve currencies and explains exorbitant privilege.

2) Use the three data sources above to characterize the evolving role of the U.S. dollar as a possible vehicle and

reserve currency. Reference either Bernanke (2016) or Iancu et al. (2020) to explain the plausible consequences for exorbitant

privilege. If you need more than two paragraphs to do so, write more than two paragraphs.

3) In a final paragraph

critically assess the usefulness and limitations of the basic statistics for your assessment of the prospects of the U.S. dollar

as a dominant vehicle and reserve currency with the associated exorbitant privilege.