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Could the Euro and Dollar Share Reserve Currency Status?
Posted on June 13, 2008
The conventional view of a reserve currency for the world is that there can only be one at any time. Before World War II, it was the pound, since then it's been the dollar, and pretty soon it'll be the euro.As of 2006, roughly 65 percent of reserves held by foreign central banks were in dollars and 25 percent in euros. Harvard's Jeffrey Frankel and University of Wisconsin's Menzie Chinn think the euro could surpass the dollar by 2015.But a problem with the one currency view is that there's never been great data on foreign reserve holdings prior to 1940. Now, Barry Eichengreen of UC Berkeley an...
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