%0 Journal Article %J American Economic Review, Papers and Proceedings %D 2019 %T China vs. U.S.: IMS Meets IPS %A Emmanuel Farhi %A Matteo Maggiori %X Currently both the International Monetary System (IMS) and the International Price Systems (IPS) are dominated by the U.S. The emergence of China, both as reserve currency and as a currency of invoicing, is likely to disrupt this status quo. We provide a framework to understand the forces that will shape this transition and identify sources of instability. We highlight the risk of an abrupt shift triggered by a run on the dollar. %B American Economic Review, Papers and Proceedings %V 109 %P 476-481 %G eng %N May