@article {395971,
	title = {A Model of the International Monetary System},
	journal = {Quarterly Journal of Economics},
	volume = {133},
	number = {1},
	year = {2018},
	pages = {295-355},
	abstract = {We propose a simple model of the international monetary system. We study the world supply and demand for reserve assets denominated in different currencies under a variety of scenarios: a Hegemon vs. a multipolar world; abundant vs. scarce reserve assets; a gold exchange standard vs. a floating rate system. We rationalize the Triffin dilemma, which posits the fundamental instability of the system, as well as the common prediction regarding the natural and beneficial emergence of a multipolar world, the Nurkse warning that a multipolar world is more unstable than a Hegemon world, and the Keynesian argument that a scarcity of reserve assets under a gold standard or at the zero lower bound is recessive. Our analysis is both positive and normative.},
	author = {Emmanuel Farhi and Matteo Maggiori}
}
