Report
What threats to the dollar's reserve currency role?
If the dollar lost its role as the dominant international reserve currency, a serious crisis would be triggered in the United States since the fiscal and external deficits could no longer be financed. A decline of the dollar as an international reserve currency could be the result of economic policies in the United States that would discourage foreign investors (in US bonds and equities): A fiscal and monetary policy that would exacerbate the shortfall in savings relative to investment (increase in welfare spending and unfunded public investment, keeping interest rates very low and thereby discouraging savings) and therefore speed up the increase in US external debt; A wage or competition policy that would reduce US companies' profitability and affect the attractiveness of the US equity market for non-residents.
Provider
Natixis
Based across the world’s leading financial centers, Natixis CIB Research offers an integrated view of the markets. The team provides support to inform Natixis clients’ investment and hedging decisions across all asset classes.
Patrick Artus
Other Reports from Natixis
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.