International Finance

Article

The Future of the Dollar: Currency Challenges in a Globalized World

Author: Benn Steil
Harvard International Review

Benn Steil argues that the world has no attractive alternatives to the current dollar-based international monetary system, but that the dollar's days of coasting on the accomplishments of the Volcker Fed are over. The Fed must demonstrate to the world anew that the dollar is a reliable long-term store of value.

See more in International Finance; Financial Crises

Article

China: Creditor to the Rich

Author: Brad W. Setser
China Security

Brad W. Setser writes about the United States' dependency on China as its largest creditor. He argues that the U.S. government should look to transition to a world in which more U.S. investment is financed by the United States' own savings.

See more in International Finance; China; United States

Article

What to Do with Over a Half a Trillion a Year? Understanding the Changes in the Management of China’s Foreign Assets

Author: Brad W. Setser
RGE Monitor

The China Investment Corporation’s $5 billion investment in Morgan Stanley, its $3 billion investment in Blackstone and the China Development Bank’s likely $2b investment in Citigroup have attracted an enormous amount of attention.  In this paper for RGE Monitor, Brad Setser examines the unprecedented growth in China ’s foreign assets, the key institutions managing these assets, and the composition of China's aggregate external portfolio.

See more in China; United States; International Finance

Article

Understanding the New Financial Superpower - The Management of GCC Official Foreign Assets

Authors: Brad W. Setser and Rachel Ziemba
RGE Monitor

With oil at $100, what do we know about how the big oil exporters are managing their petrodollars? In this paper for RGE Monitor, Brad Setser and Rachel Ziemba examine the different GCC funds and estimate that total Gulf investment abroad exceeded $2 trillion in 2007.  One surprising conclusion that emerges from their analysis is that the Gulf as a whole has not diversified away from the dollar.

See more in Middle East and North Africa; Regional Security; International Finance