The Exorbitant Privilege of US Treasuries and China's Choices in the New Era  

美国国债的嚣张特权与新时代的中国选择

作　　者：Di Dongsheng Wang Xueying 翟东升;王雪莹(School of International Studies,Renmin University of China;School of Government,Central University of Finance and Economics)

机构地区：[1]School of International Studies,Renmin University of China [2]School of Government,Central University of Finance and Economics

出　　处：《Contemporary International Relations》2024年第4期4-25,共22页现代国际关系（英文版）

摘　　要：After the decoupling of the US dollar from gold in 1971,US Treasuries replaced gold as the value benchmark of the international monetary system and acquired an exorbitant privilege.Subsequently,the total amount of US debt exhibited an exponential expansion trend,unbound by any substantial constraints.The so-called debt ceiling is a partisan game rather than a rigid fiscal constraint on the United States.As long as there are no fundamental changes in the global monetary system,the international credit of US Treasuries will stay stable,and their trend of infinite expansion will be sustained.Massive quantitative easing policies have failed to significantly shake this stability,and the notion of global investors offloading US Treasuries is more an illusion than a fact.The exorbitant privilege of US Treasuries grants its federal government the“freedom to borrow,”shielding the American financial sector from due penalties during global financial crises and securing excessive returns in global capital cycles.In the old days when running“twin surpluses”on capital and current accounts,China kept the value of Renminbi low to support its export manufacturing sector along the southeast coast.As a result,China accumulated huge foreign exchange reserves,mainly US Treasuries.Nowadays,this practice is no longer necessary,yielding low returns and posing significant security risks.

关 键 词：debt ceiling de-dollarization foreign exchange reserves transformation of the international monetary system US Treasuries 

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