The International Monetary and Financial System

This paper was prepared for the Annual Review of Economics, 2019. We thank Richard Portes for comments. Rey is grateful to the ERC (grant 695722) for funding. Gourinchas is grateful to the Clausen Center for funding. Part of this paper was written while Sauzet was visiting the European Central Bank, whose hospitality is gratefully acknowledged. The views expressed in this paper are those of the authors and do not necessarily reflect those of the European Central Bank. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.