Heinz W. Arndt Memorial Lecture, Canberra, 15 April 2010rehabilitating the Unloved Dollar Standard

18 Pages Posted: 2 Nov 2010

See all articles by Ronald McKinnon

Ronald McKinnon

Stanford University, School of Humanities & Sciences, Department of Economics (Deceased); CESifo (Center for Economic Studies and Ifo Institute for Economic Research) (Deceased)

Abstract

The international dollar standard is an accident of history that greatly facilitates international trade and exchange. But erratic US monetary and financial policies have upset the American and world economies so as to make foreigners unhappy. A weak and falling dollar led to the great price inflations of the 1970s and to disastrous asset bubbles in the noughties. It aggravated the post-War World's three great oil shocks. The asymmetrical nature of the dollar standard also makes many Americans unhappy because they cannot control their own exchange rate. Although nobody loves the dollar standard, it is a remarkably robust institution that is too valuable to lose and too difficult to replace. Rehabilitating the unloved dollar standard by ‘internationalising’ American monetary and financial policies to better stabilise the USA and world economies is the only way out of the current impasse.

Suggested Citation

McKinnon, Ronald, Heinz W. Arndt Memorial Lecture, Canberra, 15 April 2010rehabilitating the Unloved Dollar Standard. Asian-Pacific Economic Literature, Vol. 24, No. 2, pp. 1-18, November 2010, Available at SSRN: https://ssrn.com/abstract=1701347 or http://dx.doi.org/10.1111/j.1467-8411.2010.01258.x

Ronald McKinnon (Contact Author)

Stanford University, School of Humanities & Sciences, Department of Economics (Deceased)

CESifo (Center for Economic Studies and Ifo Institute for Economic Research) (Deceased)

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
2
Abstract Views
566
PlumX Metrics