Das, Mitali; Gopinath, Gita; Kim, Taehoon; Stein, Jeremy C. - 2023
countries, central bank holdings of dollar reserves are significantly correlated with the dollar-denominated bank borrowing of … stockpile of dollar reserves that allow it to serve as an ex post dollar lender of last resort. The model highlights a novel … externality: individual central banks may tend to over-accumulate dollar reserves, relative to what a global planner would choose …