Global Dollar System #primers

Simply put, it's difficult to imagine a world without dollars. The dollar permeates far beyond what one might think.

You've heard that the US dollar is the world's reserve currency, but why is that, and what does it mean? In these clips, we'll talk about why the dollar is the global currency of choice, emphasize the extent of the dollar's total dominance, and explore the Fed's role as the global leader in monetary policy - "the world's central bank".

> Dollar Dominance
> Why Dollars?
> Fed as the World's Central Bank
> Case Studies:
> GFC FX swap lines
> Dollar Strength and Inflation
> Dollar Risk Barometer
> Sovereign Dollar Borrowing

For those who prefer text, here is the slideshow PDF. In addition, all of this is available as text in Central Banking 101. Also, a great substack article from Conks.

Additional reading:
• FX swaps, shadow banks and the global dollar footprint. (Dafermos et al, Economy and Space, 2022)
• US dollar funding: an international perspective (BIS Committee on the Global Financial System)
• The geography of dollar funding of non-US banks (Aldasoro and Ehlers, BIS Quarterly Review December 2018)
• Global dollar credit: links to US monetary policy and leverage (McCauley et al, BIS Working Paper, July 2015)
• Cross-border banking and global liquidity (Bruno and Shin, BIS Working Paper, August 2014)
• The Fed’s Central Bank Swap Lines and FIMA Repo Facility (Choi et al, FRBNY Staff Reports, September 2021)
• “Recent Appreciation in the U.S. Dollar Unlikely to Have Large Effect on Domestic Inflation.” (Matschke and Sattiraju, FRB Kansas Economic Bulletin, August 2022)
• “Triennial Central Bank Survey, OTC foreign exchange turnover in April 2022.” (BIS)
• “The International Price System.” (Gopinath, National Bureau of Economic Research, 2015)
• “The Federal Reserve’s Foreign Exchange Swap Lines.” (FRBNY Current Issues, April 2010.)
• “US Dollar Funding and Emerging Market Economy Vulnerabilities.” (Financial Stability Board, April 2022).