Jiang, Zhengyang; Krishnamurthy, Arvind; Lustig - 2022
matches patterns of dollar borrowing and currency mismatch, the U.S. external balance sheet, low U.S. interest rates and … exorbitant privilege, spillovers of the U.S. monetary policy to the rest of the world, and the dollar as a global risk factor. In … doing so, we lay out a novel transmission mechanism through which the U.S. monetary policy affects the currency market and …