Exorbitant privilege and fiscal autonomy

IF 2.1 2区经济学 Q2 ECONOMICS

Oxford Review of Economic Policy Pub Date : 2023-04-10 DOI:10.1093/oxrep/grad008

Paola Subacchi, Paul van den Noord

引用次数: 1

Abstract

An aspect of the ‘exorbitant privilege’ we examine in this paper is the ability of the reserve currency issuer to run expansionary fiscal policies to stabilize the economy when a negative shock occurs without triggering an adverse reaction of foreign lenders, including, in particular, higher interest rates imposed by global capital markets. To explore this ‘privilege’ we look at the G7, a group of advanced economies that enjoy larger fiscal space than other countries. We estimate a panel regression model to explain the differences in magnitude of fiscal policy responses to common shocks as a function of countries’ reserve currency status. We find that, indeed, the prevalence of this channel is not rejected by the data and that in fact it seems to have become stronger over time, supported by the global build-up of currency reserves.

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特权和财政自主权

我们在本文中研究的“过度特权”的一个方面是，当负面冲击发生时，储备货币发行国有能力在不引发外国贷款人不利反应的情况下，实施扩张性财政政策以稳定经济，特别是包括全球资本市场施加的更高利率。为了探究这种“特权”，我们来看看七国集团(G7)，这是一组享有比其他国家更大财政空间的发达经济体。我们估计了一个面板回归模型，以解释财政政策应对共同冲击的幅度差异作为各国储备货币地位的函数。我们发现，事实上，这一渠道的普遍存在并没有被数据所否定，事实上，在全球货币储备积累的支持下，它似乎随着时间的推移变得越来越强。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Oxford Review of Economic Policy ECONOMICS-

CiteScore

12.50

自引率

1.50%

发文量

期刊介绍： The Oxford Review of Economic Policy is a refereed journal which is published quarterly. Each issue concentrates on a current theme in economic policy, with a balance between macro- and microeconomics, and comprises an assessment and a number of articles. It gives a valuable appraisal of economic policies worldwide. While the analysis is challenging and at the forefront of current thinking, articles are presented in non-technical language to make them readily accessible to all readers. The Oxford Review is aimed at a wide audience including government, business and policy-makers, as well as academics and students. It is required reading for those who need to know where research is leading.