Exorbitant privilege

[1] The term was coined in the 1960s by Valéry Giscard d'Estaing, then the French Minister of Finance.In the Bretton Woods system put in place in 1944, U.S. dollars were convertible to gold between countries.As American economist Barry Eichengreen summarized: "It costs only a few cents for the Bureau of Engraving and Printing to produce a $100 bill, but other countries had to pony up $100 of actual goods in order to obtain one.Capital Flows: The US experiences significant inflows of foreign investment, which can stimulate economic growth but also lead to volatility in financial markets.[8] This inflow results mainly from the trade deficit, and has been increasing recently, which is one of the many reasons for the reaction from the BRICS movement.
US dollarreserve currencybalance of payments crisisnet international investment positionValéry Giscard d'EstaingMinister of FinanceCharles de GaulleBretton Woods systemBarry EichengreenBureau of Engraving and PrintingRichard NixonNixon Shockfiat moneyDemurrageSeigniorageOxford University PressUniversity of Chicago PressInternational Monetary FundEichengreen, BarryNational Bureau of Economic ResearchCentre for Economic Policy ResearchVaroufakis, YanisPenguin Random House