Working Paper

International Currency Dominance

Joseph Abadi,
Jesús Fernández-Villaverde &
Daniel Sanches

June 2025

WP 25-20 (Superseded by WP 26-21)

This paper was superseded by Working Paper 26-21 – International Currency Dominance.

What Drives Global Reserve Currency Dominance?

Research in Focus — Two Philadelphia Fed economists and their coauthor have developed a model that helps them identify the factors that can make a currency dominate international trade and finance.

Research in Focus Economic Insights

Monetary Policy

Working Paper

Price-Level Determination Under the Gold Standard

Jesús Fernández-Villaverde &
Daniel Sanches

February 2024

WP 24-06 – How does an economy behave in a historical environment where gold is the international monetary standard? We find that key features of this monetary system are long-run price stability and the nonneutrality of money in the short run.

Macroeconomics

Working Paper

A Model of the Gold Standard

Jesús Fernández-Villaverde &
Daniel Sanches

September 2022

WP 22-33 – We model an international gold standard and find that it exposes domestic economies to external shocks, prompting the least-productive countries to opt out of the standard. In other words, the gold standard can be sustainable at the core but not at the periphery.