Global Imbalances and the Transition to a Symmetric World
... monetary policy from mid-2006 and it became apparent that the sub-prime housing bubble in the US was going to burst amid rising interest rates. Starting in July 2007, accumulating losses on US sub-prime mortgages triggered widespread disruption of credit markets, as uncertainty about the ultimate si ...
... monetary policy from mid-2006 and it became apparent that the sub-prime housing bubble in the US was going to burst amid rising interest rates. Starting in July 2007, accumulating losses on US sub-prime mortgages triggered widespread disruption of credit markets, as uncertainty about the ultimate si ...
Hot Money Flows, Cycles in Primary Commodity Prices, and
... For better or for worse, the world economy is on a dollar standard—and has been since the end of World War II [McKinnon 2013, chs. 1& 2]. From 1945 up to the late 1960s, this accident of history was for the better. Monetary policy of the United States remained stable, and its current account showed ...
... For better or for worse, the world economy is on a dollar standard—and has been since the end of World War II [McKinnon 2013, chs. 1& 2]. From 1945 up to the late 1960s, this accident of history was for the better. Monetary policy of the United States remained stable, and its current account showed ...
Information Asymmetry and Foreign Currency Borrowing by Small
... A further characteristic of foreign banks, which might lead to the surge in foreign currency loans, is that foreign banks may face more information asymmetry than domestic banks which typically have long-established relationships with their clients. This information asymmetry issue may be particula ...
... A further characteristic of foreign banks, which might lead to the surge in foreign currency loans, is that foreign banks may face more information asymmetry than domestic banks which typically have long-established relationships with their clients. This information asymmetry issue may be particula ...
Document
... – Example: Suppose the central bank has been fixing E at E0 and that asset markets are in equilibrium. An increase in output would raise the money demand and thus lead to a higher interest rate and an appreciation of the home currency. Copyright © 2003 Pearson Education, Inc. ...
... – Example: Suppose the central bank has been fixing E at E0 and that asset markets are in equilibrium. An increase in output would raise the money demand and thus lead to a higher interest rate and an appreciation of the home currency. Copyright © 2003 Pearson Education, Inc. ...
chapter overview
... 10. The pros and cons of forward contracts and swaps lie within how each works. A forward contract can be arranged between a purchaser and a seller, and is dependent upon each participant’s beliefs of what will happen in the future. Sometimes it can be difficult to match counterparties to such contr ...
... 10. The pros and cons of forward contracts and swaps lie within how each works. A forward contract can be arranged between a purchaser and a seller, and is dependent upon each participant’s beliefs of what will happen in the future. Sometimes it can be difficult to match counterparties to such contr ...
editing method for the bulletin of the transilvania university
... excepting the UK and USA, which held only gold reserves. In the face of huge gold and capital outflows, UK departed from gold in 1931; in USA the gold owned by private citizens was nationalized in 1933. There was a further modification of the gold standard under the Bretton Woods system (1946-1971), ...
... excepting the UK and USA, which held only gold reserves. In the face of huge gold and capital outflows, UK departed from gold in 1931; in USA the gold owned by private citizens was nationalized in 1933. There was a further modification of the gold standard under the Bretton Woods system (1946-1971), ...
Detecting Structural Breaks: Exchange Rates in
... The study uses data from the following eleven countries: the Czech Republic, Hungary, Poland, Slovakia, Slovenia, Albania, Bulgaria, Romania, Estonia, Latvia, and Lithuania. The time span of the data is from January 1991 to December 1997. The monthly average exchange rates of respective national cur ...
... The study uses data from the following eleven countries: the Czech Republic, Hungary, Poland, Slovakia, Slovenia, Albania, Bulgaria, Romania, Estonia, Latvia, and Lithuania. The time span of the data is from January 1991 to December 1997. The monthly average exchange rates of respective national cur ...
Political Contagion in Currency Crises
... cascades to contagious currency crises, it is not clear what is the relevant information transferred across currency markets. Less formally, the idea of informational externalities has been applied to foreign exchange markets as follows. It is argued that with uncertainty about policymakers’ commitm ...
... cascades to contagious currency crises, it is not clear what is the relevant information transferred across currency markets. Less formally, the idea of informational externalities has been applied to foreign exchange markets as follows. It is argued that with uncertainty about policymakers’ commitm ...
Economics and Political Economy
... Esaka (2010a) examines the link between de facto exchange rate regimes and the incidence of currency crises in 84 countries from 1980 to 2001 using probit models. The author employs the de facto classification of Reinhart & Rogoff (2004) and finds no evidence that intermediate regimes have a signifi ...
... Esaka (2010a) examines the link between de facto exchange rate regimes and the incidence of currency crises in 84 countries from 1980 to 2001 using probit models. The author employs the de facto classification of Reinhart & Rogoff (2004) and finds no evidence that intermediate regimes have a signifi ...
real exchange rate
... other currencies. The dollar is overvalued if the actual exchange rate is greater than the implied exchange rate, and it is undervalued if the actual exchange rate is less than the implied exchange rate. Step 4: Calculate the implied exchange rate between the zloty and the real. The implied exchange ...
... other currencies. The dollar is overvalued if the actual exchange rate is greater than the implied exchange rate, and it is undervalued if the actual exchange rate is less than the implied exchange rate. Step 4: Calculate the implied exchange rate between the zloty and the real. The implied exchange ...
Exchange Rate Regimes
... nearly identical with the argument for daylight savings time. Isn’t it absurd to change the clock in summer when exactly the same ...
... nearly identical with the argument for daylight savings time. Isn’t it absurd to change the clock in summer when exactly the same ...
Three Myths Behind the Case for Grexit: A Destructive Analysis
... or the European Central Bank. To put this point as a formal proposition: There cannot be any policy autonomy, or any meaningful economic sovereignty more generally, for a small exporting country that chooses to occupy global financial commodity ...
... or the European Central Bank. To put this point as a formal proposition: There cannot be any policy autonomy, or any meaningful economic sovereignty more generally, for a small exporting country that chooses to occupy global financial commodity ...
Currency
A currency (from Middle English: curraunt, ""in circulation"", from Latin: currens, -entis) in the most specific use of the word refers to money in any form when in actual use or circulation as a medium of exchange, especially circulating banknotes and coins. A more general definition is that a currency is a system of money (monetary units) in common use, especially in a nation. Under this definition, British pounds, U.S. dollars, and European euros are examples of currency. These various currencies are stores of value, and are traded between nations in foreign exchange markets, which determine the relative values of the different currencies. Currencies in this sense are defined by governments, and each type has limited boundaries of acceptance.Other definitions of the term ""currency"" are discussed in their respective synonymous articles banknote, coin, and money. The latter definition, pertaining to the currency systems of nations, is the topic of this article. Currencies can be classified into two monetary systems: fiat money and commodity money, depending on what guarantees the value (the economy at large vs. the government's physical metal reserves). Some currencies are legal tender in certain jurisdictions, which means they cannot be refused as payment for debt. Others are simply traded for their economic value. Digital currency arose with the popularity of computers and the Internet.