The Dominant Currency Paradigm

"What are the macroeconomic implications of most countries engaging in dollar invoicing?"

Join the IMF's new Chief Economist, Gita Gopinath, as she discusses the macroeconomic spillovers of most open economies invoicing their imports in dollars, given Keynesian assumptions of sticky prices and nominal rigidity. Within her discussion are also incorporated pressing debates... view more


Dominant Currency Paradigm 1: Shanta Devarajan, Senior Director for Development Economics at the World Bank Group, provides (1) a snapshot of current academic discourse regarding the field of macroeconomics, and (2) introduces Chief Economist of the IMF, Gita Gopinath, as pushing the envelope in her approach to macro policy.


Dominant Currency Paradigm 2: Gita Gopinath covers the underlying principles of Keynesian Open Economy Macroeconomics, and teaches how to apply them to understanding international trade.


Dominant Currency Paradigm 3: Gita Gopinath discusses the implications of most countries invoicing their imports in dollars, given Keynesian assumptions of nominal rigidity.


Dominant Currency Paradigm 4: Gita Gopinath concludes how the high prevalence of dollar-invoicing will only keep encouraging the phenomenon more.


Dominant Currency Paradigm 5: Gita Gopinath answers questions regarding her talk from the audience.

About the Presenters

Gita Gopinath

Gita Gopinath is the Economic Counsellor and Director of the Research Department at the International Monetary Fund (IMF). She is on leave of public service from Harvard University’s Economics department where she is the John Zwaanstra Professor of International Studies and of Economics. Ms. Gopinath’s research, which focuses on International Finance and Macroeconomics, has been published in many top economics journals. She has authored numerous research articles on exchange rates, trade and investment, international financial crises, monetary policy, debt, and emerging market crises. She is the co-editor of the current Handbook of International Economics and was earlier the co-editor of the American Economic Review and managing editor of the Review of Economic Studies. She had also previously served as the co-director of the International Finance and Macroeconomics program at the National Bureau of Economic Research (NBER), a visiting scholar at the Federal Reserve Bank of Boston, and member of the economic advisory panel of the Federal Reserve Bank of New York. From 2016-18, she was the Economic Adviser to the Chief Minister of Kerala state in India. She also served as a member of the Eminent Persons Advisory Group on G-20 Matters for India's Ministry of Finance. Ms. Gopinath is an elected fellow of the American Academy of Arts and Sciences and of the Econometric Society, and recipient of the Distinguished Alumnus Award from the University of Washington. In 2019, Foreign Policy named her one of the Top Global Thinkers, in 2014, she was named one of the top 25 economists under 45 by the IMF and in 2011 she was chosen a Young Global Leader (YGL) by the World Economic Forum. The Indian government awarded her the Pravasi Bharatiya Samman, the highest honour conferred on overseas Indians. Before joining the faculty of Harvard University in 2005, she was an assistant professor of economics at the University of Chicago’s Booth School of Business.Ms. Gopinath was born in India. She is a U.S. citizen and an Overseas Citizen of India. She received her Ph.D. in economics from Princeton University in 2001 after earning a B.A. from Lady Shri Ram College and M.A. degrees from Delhi School of Economics and University of Washington.

Shanta Devarajan

Shanta Devarajan is the Senior Director for Development Economics (DEC) and the acting World Bank Group Chief Economist. Previously, he was the Chief Economist of the World Bank’s Middle East and North Africa Region. Since joining the World Bank in 1991, he has been a Principal Economist and Research Manager for Public Economics in the Development Research Group, and the Chief Economist of the Human Development Network, the South Asia Region and Africa Region. He was a director of the World Development Report 2004, Making Services Work for Poor People. Before 1991, he was on the faculty of Harvard University’s John F. Kennedy School of Government. The author or co-author of over 100 publications, Mr. Devarajan’s research covers public economics, trade policy, natural resources and the environment, and general equilibrium modeling of developing countries. Born in Sri Lanka, Mr. Devarajan received his B.A. in mathematics from Princeton University and his Ph.D. in economics from the University of California, Berkeley. Shanta's latest blog posts can also be found on his blog, Future Development.