We develop a model of the global financial cycle with one key ingredient: the international
demand for safe dollar assets. The model matches patterns of dollar borrowing and currency …

We construct a two-country New Keynesian model in which US government debt has an
advantage as a superior collateral asset on the balance sheets of banks. The model can …

We analyze a large number of industry-and company-level filings of global institutional
investors to provide the first comprehensive estimate of foreign investors' US dollar (USD) …

We study three centuries of UK, US and Dutch fiscal history. When a country is the dominant
safe asset supplier, it can issue more debt than what is justified by its future primary …

We develop a theory of exchange rate fluctuations arising from financial institutions' demand
for dollar liquid assets. Financial flows are unpredictable and may leave banks “scrambling …

The resilience of the US Treasury market is limited by dealer balance sheets that are not
sufficiently large and flexible to effectively intermediate this market in a``dash for cash," as …

This paper provides novel empirical evidence on portfolio rebalancing in international bond
markets through the prism of investors' demand for bonds. Using a granular dataset of global …

Recent trends suggest the world economy may be tending towards an equilibrium with two
distinct trading blocs, each internally integrated, but with significant isolation between the …

The international financial system evolved out of the need for trade settlement and trade
credit as early as 4000 BCE. Then, from the late thirteenth century, the capital account …

This paper documents a substantial change in the use of currency of invoicing in import and
export transactions, precipitated by the war on Ukraine and the subsequent introduction of …