A1 - Agnès Bénassy-Quéré
A1 - Sophie Béreau
A1 - Valérie Mignon
TI - The Dollar in the Turmoil
IS - 2009-08
T3 - Working Papers
KW - Equilibrium exchange rate
KW - US dollar
KW - Global imbalances
KW - Crisis
KW - Valuation effects
N2 - We study the impact of the global financial crisis on the equilibrium exchange rate of the US dollar. We first simulate the impact of the crisis on the US net foreign asset position. Then, we calculate the equilibrium value of the dollar according both to a BEER and to a FEER approach. We find the case for a strong, although temporary, depreciation of the dollar even more acute than before the crisis. This suggests that the strength of the dollar in late 2008 and early 2009 may be short-lived.
ER -