Global Financial and Fiscal Crises and International Monetary System

This is the authors' abstract. We don't add key points for this paper.

A series from the global imbalance to the global financial crisis and the European fiscal crisis brought about large fluctuations of exchange rates of the US dollar, the euro, and the Asian currencies. This paper investigates a mechanism where the global imbalance brought about the global financial crisis and, in turn, the European fiscal crisis under the current international monetary system with the US dollar as a key currency. In addition, it investigates how both the global financial crisis and the European fiscal crisis affected Asian currencies which include the Japanese yen as well as the US dollar and the euro.