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The term exorbitant privilege (privilège exorbitant in French) refers to the benefits the United States has due to its own currency (the US dollar) being the international reserve currency. For example, the US would not face a balance of payments crisis, because their imports are purchased in their own currency. Exorbitant privilege as a concept cannot refer to currencies that have a regional reserve currency role, only to global reserve currencies.[clarification needed]
Academically, the exorbitant privilege literature analyzes two empirical puzzles, the position puzzle and the income puzzle. The position puzzle refers to the difference between the (negative) U.S. net international investment position (NIIP) and the accumulated U.S. current account deficits, the former being much smaller than the latter. The income puzzle is that despite a deeply negative NIIP, the U.S. income balance is positive, i.e. despite having much more liabilities than assets, earned income is higher than interest expenses.[1]
^Curcuru et al. (2013).
and 26 Related for: Exorbitant privilege information
The term exorbitantprivilege (privilègeexorbitant in French) refers to the benefits the United States has due to its own currency (the US dollar) being...
1960s. In France, the Bretton Woods system was called "America's exorbitantprivilege" as it resulted in an "asymmetric financial system" where non-US...
balance of payments crisis has been described as the United States's exorbitantprivilege. The United States Mint has issued legal tender coins every year...
Gaulle openly criticised the US intervention in Vietnam and the "exorbitantprivilege" of the US dollar. In his later years, his support for the slogan...
The European Economy Since 1945 (Princeton University Press 2007), ExorbitantPrivilege: The Rise and Fall of the Dollar and the Future of the International...
rather than a sudden change. Bretton Woods system Dollar hegemony Exorbitantprivilege Reserve currency Impossible trinity (trilemma) While named for Triffin...
Diba, Behzad; López-Salido, David (2013). "Key currency status: An exorbitantprivilege and an extraordinary risk". Journal of International Money and Finance...
First World privilege is any advantages accrued by an individual by virtue of being a national of a First World country. First-World privilege is often explicitly...
economic power, especially what his Finance minister called the "exorbitantprivilege" of the U.S. dollar. In May 1968, he appeared likely to lose power...
Maker and Privilege Taker". World Politics. 61: 121. doi:10.1017/S0043887109000057. S2CID 154088693. Eichengreen, Barry (2011). ExorbitantPrivilege: The Rise...
Cryptocurrency – Digital currency not reliant on a central authority Exorbitantprivilege – Economic gain by reserve currency nation Floating exchange rate –...
Rethinking of the Way to Fight Global Poverty Barry Eichengreen, ExorbitantPrivilege: The Rise and Fall of the Dollar and the Future of the International...
dollars were convertible to gold. In France, it was called "America's exorbitantprivilege" as it resulted in an "asymmetric financial system" where foreigners...
University Press. p. 38. ISBN 9780195030105. Eichengreen, Barry (2011). ExorbitantPrivilege; The Rise and Fall of the Dollar. New York: Oxford University press...
Bernanke (January 7, 2016). "The dollar's international role: An "exorbitantprivilege"?". Brookings Institution. "Major Foreign Holders of Treasury Securities"...
"System Maker and Privilege Taker". World Politics. 61: 121–154. doi:10.1017/S0043887109000057. Eichengreen, Barry (2011). ExorbitantPrivilege: The Rise and...
markets reserve accumulation – 24 March 2006 Eichengreen, Barry. ExorbitantPrivilege: The Rise and Fall of the Dollar and the Future of the International...
would allow the different countries of the world to escape the "exorbitantprivilege" of the United States, producers of the reference currency - the...
economic power, especially what his Finance minister called the "exorbitantprivilege" of the U.S. dollar. He went to Canada and proclaimed "Vive le Québec...
U.S. multinationals as the exorbitant tax privilege (and link it to the wider economic concept of U.S. exorbitantprivilege). U.S. Perspective II. If the...
Origins of Banking Crises and Scarce Credit (2014) Barry Eichengreen, ExorbitantPrivilege: The Rise and Fall of the Dollar and the Future of the International...
Bernanke (7 January 2016). "The dollar's international role: An "exorbitantprivilege"?". Brookings Institution. "THE STRUGGLE FOR IRAQ: DIPLOMACY; Iraq...
financial gains for the U.S. (some attribute this phenomenon to exorbitantprivilege). Economists at the Federal Reserve estimated that during 1994-2007...
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