the determination of exchange rates
... determinants of currency supplies and demands are first discussed with the aid of a twocurrency model featuring the U.S. dollar and the euro, the official currency of the twelve countries that participate in the European Monetary Union (EMU). The members of EMU are often known collectively as Eurola ...
... determinants of currency supplies and demands are first discussed with the aid of a twocurrency model featuring the U.S. dollar and the euro, the official currency of the twelve countries that participate in the European Monetary Union (EMU). The members of EMU are often known collectively as Eurola ...
CURRENCY BOARDS Steve H. Hanke and Kurt Schuler
... A sound currency serves as a satisfactory store of value, medium of exchange, and unit of account. An unsound currency such as the ruble does not fulfill any of those functions. An unsound currency is not a reliable store of value because inflation makes its value highly unpredictable. As a result, ...
... A sound currency serves as a satisfactory store of value, medium of exchange, and unit of account. An unsound currency such as the ruble does not fulfill any of those functions. An unsound currency is not a reliable store of value because inflation makes its value highly unpredictable. As a result, ...
INSTITUTE OF ECONOMIC STUDIES
... economies alike, a substantial proportion of domestic liabilities are currency linked. In these currency dependent economies (CDEs), credit and currency risk is integrated in current capital regulation, and will be even more so when Basel–II is implemented. This is not a problem for diversified larg ...
... economies alike, a substantial proportion of domestic liabilities are currency linked. In these currency dependent economies (CDEs), credit and currency risk is integrated in current capital regulation, and will be even more so when Basel–II is implemented. This is not a problem for diversified larg ...
Currency Manipulation, the US Economy
... foreign governments. Trade balance improvement is essential if the United States is to reduce its high unemployment and underutilized capacity at a satisfactory rate, under current and prospective macroeconomic policies at home and abroad. Fiscal consolidation will be essential for as long as a deca ...
... foreign governments. Trade balance improvement is essential if the United States is to reduce its high unemployment and underutilized capacity at a satisfactory rate, under current and prospective macroeconomic policies at home and abroad. Fiscal consolidation will be essential for as long as a deca ...
Consumption Baskets and Currency Choice in International Borrowing
... remains pervasive across most emerging and developing countries.1 A number of explanations have been put forward to account for it. Some point to inherent weakenesses of these emerging economies, while others emphasize factors exogenous to emerging economies, such as the characteristics of the inter ...
... remains pervasive across most emerging and developing countries.1 A number of explanations have been put forward to account for it. Some point to inherent weakenesses of these emerging economies, while others emphasize factors exogenous to emerging economies, such as the characteristics of the inter ...
The Canadian Dollar is Rising Along with Oil Prices
... rise a bit further, which would help the loonie. On the other hand, the Canadian dollar may suffer if the greenback becomes more valuable. Altogether, the loonie does not seem likely to make a sustainable return to US$0.75 and over in the next few months. Later in the year, it might profit from high ...
... rise a bit further, which would help the loonie. On the other hand, the Canadian dollar may suffer if the greenback becomes more valuable. Altogether, the loonie does not seem likely to make a sustainable return to US$0.75 and over in the next few months. Later in the year, it might profit from high ...
Weak dollar, strong euro? - Centre for European Reform
... of about 40 per cent each for the dollar and the euro, with about 20 per cent remaining for the yen and a few minor currencies. Even if EMU comprised only half a dozen “core countries”, for example Benelux, France, Germany and Austria, it would still constitute an economy about two-thirds the size o ...
... of about 40 per cent each for the dollar and the euro, with about 20 per cent remaining for the yen and a few minor currencies. Even if EMU comprised only half a dozen “core countries”, for example Benelux, France, Germany and Austria, it would still constitute an economy about two-thirds the size o ...
Currency Boards
... liquidity provided allows a means of financing the deficit. As discussed earlier this is not an option for most currency boards. The central bank has two means by which it can influence the liquidity of the banking system. The first option is to buy and sell their own securities. The second option i ...
... liquidity provided allows a means of financing the deficit. As discussed earlier this is not an option for most currency boards. The central bank has two means by which it can influence the liquidity of the banking system. The first option is to buy and sell their own securities. The second option i ...
Learn how depreciating rupee induces interest cut There is lot of
... There is lot of expectation from the RBI about a possible cut in key interest rates in its upcoming policy. While the expectations of rate cut might be warranted keeping in mind the slowing economy and falling commodity prices, primarily oil, but we have to remember that there is another variable be ...
... There is lot of expectation from the RBI about a possible cut in key interest rates in its upcoming policy. While the expectations of rate cut might be warranted keeping in mind the slowing economy and falling commodity prices, primarily oil, but we have to remember that there is another variable be ...
Kaminisky, Graciela L
... change of government, legal executive transfer, illegal executive transfer, left-wing government, and new finance minister; also degree of political instability. Good signal: a signal that is followed by a crisis within 24 months False signal (or noise): a signal not followed by a crisis within that ...
... change of government, legal executive transfer, illegal executive transfer, left-wing government, and new finance minister; also degree of political instability. Good signal: a signal that is followed by a crisis within 24 months False signal (or noise): a signal not followed by a crisis within that ...
Trade Balances, Exchange Rates and the
... due to intervention do not affect the domestic money base. In this case, the central bank would keep the money base (domestic bonds + reserves) constant by a further expansion of the money supply which is precisely offset by the loss of reserves. This can only be carried out in the short run as the ...
... due to intervention do not affect the domestic money base. In this case, the central bank would keep the money base (domestic bonds + reserves) constant by a further expansion of the money supply which is precisely offset by the loss of reserves. This can only be carried out in the short run as the ...
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.