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Seoul Journal of Economics - Vol. 34 , No. 1

[ Article ]
Seoul Journal of EconomicsVol. 34, No. 1, pp.1-15
Abbreviation: SJE
ISSN: 1225-0279 (Print)
Print publication date 28 Feb 2021
Received 10 Dec 2020 Accepted 10 Jan 2021
DOI: https://doi.org/10.22904/sje.2021.34.1.001

The Dollar and its Discontents
Barry Eichengreen
Barry Eichengreen, Professor, Department of Economics, University of California, Berkeley, CA 94720-3880, USA, Tel: +1 510 6422772 (eichengr@econ.berkeley.edu)

JEL Classification: F30, F31


The dollar fell by 10 per cent between its March 2020 high and the end of the calendar year, and many banks and forecasters expect it to fall further, by as much as 35 per cent in 2021. Dollar skeptics cite the end of safe-haven flows following the approval of COVID vaccines, the Federal Reserve’s aggressive quantitative easing, America’s twin deficits, and the rise of viable alternatives to the greenback. This article argues, in contrast, that this dollar pessimism is overdrawn.

Keywords: Dollar, Exchange rate, Twin deficit

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