TY - JOUR
T1 - The Dollar in the Turmoil
AU - Bereau, Sophie
AU - Bénassy-Quéré, Agnès
AU - Mignon, Valérie
PY - 2009
Y1 - 2009
N2 - We study the impact of the global financial crisis on the equilibrium exchange rate of the US dollar. We first simulate the impact of the crisis on the US net foreign asset position. Then, we calculate the equilibrium value of the dollar according both to a BEER and to a FEER approach. We find the case for a strong, although temporary, depreciation of the dollar even more acute than before the crisis. This suggests that the strength of the dollar in late 2008 and early 2009 may be short-lived.
AB - We study the impact of the global financial crisis on the equilibrium exchange rate of the US dollar. We first simulate the impact of the crisis on the US net foreign asset position. Then, we calculate the equilibrium value of the dollar according both to a BEER and to a FEER approach. We find the case for a strong, although temporary, depreciation of the dollar even more acute than before the crisis. This suggests that the strength of the dollar in late 2008 and early 2009 may be short-lived.
KW - Equilibrium exchange rate
KW - Global imbalancesCrisis
KW - Valuation effects
U2 - https://doi.org/10.1016/j.jjie.2009.06.001
DO - https://doi.org/10.1016/j.jjie.2009.06.001
M3 - Article
SN - 0889-1583
VL - 23
SP - 427
EP - 436
JO - Journal of the Japanese and International Economies
JF - Journal of the Japanese and International Economies
IS - 4
ER -