Policy Contribution
... gross product as in the USA and the Federal Republic of Germany” (Commission of the European Communities, 1977, pp10-11). Fifteen years later, the Maastricht Treaty did not incorporate any form of ‘fiscal union’, except in the very narrow sense of fiscal discipline: fiscal profligacy at national lev ...
... gross product as in the USA and the Federal Republic of Germany” (Commission of the European Communities, 1977, pp10-11). Fifteen years later, the Maastricht Treaty did not incorporate any form of ‘fiscal union’, except in the very narrow sense of fiscal discipline: fiscal profligacy at national lev ...
Currency Strategy 2015-09
... have decreased by USD 400bn. Partly this may reflect the valuation effect as the USD (and CNY) appreciates, although most comes from outflows. Some outflows may also result from the transfer of funds from the central bank’s balance sheet to strengthen the capital base of various policy banks and new ...
... have decreased by USD 400bn. Partly this may reflect the valuation effect as the USD (and CNY) appreciates, although most comes from outflows. Some outflows may also result from the transfer of funds from the central bank’s balance sheet to strengthen the capital base of various policy banks and new ...
Cash, freedom and crime: Use and impact of cash in
... concerns that this banknote could facilitate illicit activities”. However, the ECB assures that EUR 500 banknotes already in circulation will continue to be legal tender and as such will remain a means of payment and a store of value. Eurosystem central banks will always – without a final deadline – ...
... concerns that this banknote could facilitate illicit activities”. However, the ECB assures that EUR 500 banknotes already in circulation will continue to be legal tender and as such will remain a means of payment and a store of value. Eurosystem central banks will always – without a final deadline – ...
Proposed Architecture for an ECOWAS Common Currency
... respective currencies that could result from an ECOWAS-wide common currency union. Indeed, historical evidence shows that these countries often post current account deficits and rely upon the arrangement with the guaranteeing country – France or Portugal – to finance such deficits through the Compte ...
... respective currencies that could result from an ECOWAS-wide common currency union. Indeed, historical evidence shows that these countries often post current account deficits and rely upon the arrangement with the guaranteeing country – France or Portugal – to finance such deficits through the Compte ...
Central banks and currency boards / What a currency board is
... Interest rates and inflation: An orthodox currency board does not try to influence interest rates by establishing a discount rate like a typical central bank. The fixed exchange rate with the anchor currency encourages arbitrage that tends to keep interest rates and inflation in the currency board ...
... Interest rates and inflation: An orthodox currency board does not try to influence interest rates by establishing a discount rate like a typical central bank. The fixed exchange rate with the anchor currency encourages arbitrage that tends to keep interest rates and inflation in the currency board ...
The Measurement of Co-Circulation of Currencies and Dollarization
... Armenian economy has been growing since 1994, the banking system is still very weak and is unable to generate sufficient savings for profitable lending opportunities to the formal economy. In 2002, GDP grew by 12.9%, but bank lending grew by only 7.7%. At the end of 2002, banking system assets were ...
... Armenian economy has been growing since 1994, the banking system is still very weak and is unable to generate sufficient savings for profitable lending opportunities to the formal economy. In 2002, GDP grew by 12.9%, but bank lending grew by only 7.7%. At the end of 2002, banking system assets were ...
CLAUS BRAND DIETER GERDESMEIER BARBARA ROFFIA May
... flexibility of markets and the efficiency of the institutional framework of the economy). Furthermore, velocity can be expected to be a function of a small number of explanatory variables (cf. Friedman (1956)). According to this, it is either a stable or predictable function of these determinants. F ...
... flexibility of markets and the efficiency of the institutional framework of the economy). Furthermore, velocity can be expected to be a function of a small number of explanatory variables (cf. Friedman (1956)). According to this, it is either a stable or predictable function of these determinants. F ...
Regional currency areas and the use of foreign currencies
... Until 1980, some 14 years after Lesotho’s independence, the RSA rand was the sole medium of exchange in the country. The people of Lesotho did not have a currency of their own or a central bank. During this period, Lesotho and the RSA could be said to have been in a de facto currency union since the ...
... Until 1980, some 14 years after Lesotho’s independence, the RSA rand was the sole medium of exchange in the country. The people of Lesotho did not have a currency of their own or a central bank. During this period, Lesotho and the RSA could be said to have been in a de facto currency union since the ...
Dual-Currency Economies as Multiple-Payment Systems
... Fifth, the relative amounts of the two currencies in the economy, m1 and m2 , do not influence the equilibrium quantities of goods. This is a result of the buyer-take-all assumption. The values m1 and m2 appear in the returns to search only for the seller, rV0. But with the buyer-take-all condition, ...
... Fifth, the relative amounts of the two currencies in the economy, m1 and m2 , do not influence the equilibrium quantities of goods. This is a result of the buyer-take-all assumption. The values m1 and m2 appear in the returns to search only for the seller, rV0. But with the buyer-take-all condition, ...
Understanding deflation - European Parliament
... Historically, deflation occurred quite frequently in the late 19th and early 20th century and then again between the two World Wars. There have been fewer episodes of deflation since. A recent paper by the Bank of International Settlements (BIS) examined deflation in 38 countries over the past 140 y ...
... Historically, deflation occurred quite frequently in the late 19th and early 20th century and then again between the two World Wars. There have been fewer episodes of deflation since. A recent paper by the Bank of International Settlements (BIS) examined deflation in 38 countries over the past 140 y ...
Common Currency Arrangements for East Asia
... also seem to have some support from within the region, as shown by the public comments in support of an Asian currency unit by HKMA Chief Executive Joseph Yam and Philippines President Joseph Estrada. Consideration of common currency arrangements has been stimulated by the successful introduction of ...
... also seem to have some support from within the region, as shown by the public comments in support of an Asian currency unit by HKMA Chief Executive Joseph Yam and Philippines President Joseph Estrada. Consideration of common currency arrangements has been stimulated by the successful introduction of ...
An exorbitant privilege? Implications of reserve
... 100 basis points and that the euro may appreciate by a further 10 percent compared with current levels. This exchange rate effect would have a substantial impact on the competitiveness of exporting companies in many Eurozone economies. Given that European policy makers are concerned at today’s euro ...
... 100 basis points and that the euro may appreciate by a further 10 percent compared with current levels. This exchange rate effect would have a substantial impact on the competitiveness of exporting companies in many Eurozone economies. Given that European policy makers are concerned at today’s euro ...
Hayek - currency competition and European monetary union
... system finally collapsed. The problems created were magnified by the increase in oil and commodity prices in 1973. This led to soaring inflation.3 A few years later the industrial world was caught in a combination of high inflation and substantially increased unemployment. The policy that had broug ...
... system finally collapsed. The problems created were magnified by the increase in oil and commodity prices in 1973. This led to soaring inflation.3 A few years later the industrial world was caught in a combination of high inflation and substantially increased unemployment. The policy that had broug ...
Currency Privatization as a Substitute for Currency
... A nation that seeks to fix the value of its currency relative to that of some other nation’s currency can do so in at least three different ways: it can assign responsibility to the central bank for “pegging” the currency’s exchange rate, without imposing any particular foreigncurrency reserve requi ...
... A nation that seeks to fix the value of its currency relative to that of some other nation’s currency can do so in at least three different ways: it can assign responsibility to the central bank for “pegging” the currency’s exchange rate, without imposing any particular foreigncurrency reserve requi ...
measuring the gains from currency union membership in southern
... less uncertainty. These microeconomic factors are all determinants of international trade. In that sense, high transaction costs, low transparency and great uncertainty increase trade costs which reduce trade flows (Anderson and Van Wincoop 2004). The high variability of exchange rates when freely f ...
... less uncertainty. These microeconomic factors are all determinants of international trade. In that sense, high transaction costs, low transparency and great uncertainty increase trade costs which reduce trade flows (Anderson and Van Wincoop 2004). The high variability of exchange rates when freely f ...
Zero lower bound: Is it a problem in the euro area?
... As already indicated in footnote 3, for the time being there is not sufficient information available to reliably discriminate between alternative models of euro area-wide inflation determination and, thus, the need of further empirical work on inflation dynamics in the euro area ranks high. ...
... As already indicated in footnote 3, for the time being there is not sufficient information available to reliably discriminate between alternative models of euro area-wide inflation determination and, thus, the need of further empirical work on inflation dynamics in the euro area ranks high. ...
Price Level Dynamics Differentiation as a Problem of Definition of
... probably the only case of applying the price level as an objective of monetary policy were the experiments of the Bank of Sweden conducted in the 1930s, based on a strategy of price level targeting (Berg and Jonung 1999). Furthermore, the predominant value of inflation is the favourable rate (the se ...
... probably the only case of applying the price level as an objective of monetary policy were the experiments of the Bank of Sweden conducted in the 1930s, based on a strategy of price level targeting (Berg and Jonung 1999). Furthermore, the predominant value of inflation is the favourable rate (the se ...
NBER WORKING PAPER SERIES EXPERIENCE OF AND LESSONS FROM EXCHANGE RATE
... Sixteen follow bands or crawls (including five horizontal bands—four of them developing countries and one, Denmark, a remnant of the European Monetary System; four crawling pegs; and seven crawling bands). Forty-three are classified by the IMF as “managed floating with no preannounced path for the e ...
... Sixteen follow bands or crawls (including five horizontal bands—four of them developing countries and one, Denmark, a remnant of the European Monetary System; four crawling pegs; and seven crawling bands). Forty-three are classified by the IMF as “managed floating with no preannounced path for the e ...
Internationalization of the RMB and Historical Precedents
... a decade. But they underestimate the importance of the third criterion, the depth of financial markets. In principle, the Chinese government could decide to create that depth, which would require accepting an open capital account, diminished control over the domestic allocation of credit, and a flex ...
... a decade. But they underestimate the importance of the third criterion, the depth of financial markets. In principle, the Chinese government could decide to create that depth, which would require accepting an open capital account, diminished control over the domestic allocation of credit, and a flex ...
Slides - Centre for Economic Policy Research
... conducted by check, credit card, debit card, electronic transfer, or other electronic means, the easier the transition to an electronic dollar, euro, yen, pound etc. unit of account is. • The fraction of transactions conducted in electronic/bank money depends on – convenience, – electronic discount/ ...
... conducted by check, credit card, debit card, electronic transfer, or other electronic means, the easier the transition to an electronic dollar, euro, yen, pound etc. unit of account is. • The fraction of transactions conducted in electronic/bank money depends on – convenience, – electronic discount/ ...
the ecb: independence, accountability and transparency
... The ECB is, formally and probably also in practice, the most independent central bank in the world. Its high degree of independence goes hand in hand with the accountability towards the European Parliament and the Europeans citizens as established in the Treaty. The ECB has taken additional me ...
... The ECB is, formally and probably also in practice, the most independent central bank in the world. Its high degree of independence goes hand in hand with the accountability towards the European Parliament and the Europeans citizens as established in the Treaty. The ECB has taken additional me ...
The Free Banking Era and Online Currencies
... communities and counties, the Free Banking era came to an end. This event was due to the Civil War. The debt created from this war forced President Abraham Lincoln to create another standard (but fiat) currency over the myriad of other alternate currencies. It is important to note, though, that the ...
... communities and counties, the Free Banking era came to an end. This event was due to the Civil War. The debt created from this war forced President Abraham Lincoln to create another standard (but fiat) currency over the myriad of other alternate currencies. It is important to note, though, that the ...
An Analysis of the Impact of the Online –Virtual Currency
... deflation, as well as the foam of the virtual currency online. We should adopt macro regulations such as fiscal and currency policy, strengthen the regulation of interest and tax rate, adjust the structure and balance the virtual currency online and the economic lever so as to promote the balance d ...
... deflation, as well as the foam of the virtual currency online. We should adopt macro regulations such as fiscal and currency policy, strengthen the regulation of interest and tax rate, adjust the structure and balance the virtual currency online and the economic lever so as to promote the balance d ...
Internationalization of the RMB and Historical Precedents
... It is surprisingly difficult to come up with a proxy for size, depth, or development that is available for all the financial centers. We have opted to use as our primary measure data on foreign exchange turnover in the respective financial centers: New York, London, Frankfurt, Tokyo, Zurich, etc. Th ...
... It is surprisingly difficult to come up with a proxy for size, depth, or development that is available for all the financial centers. We have opted to use as our primary measure data on foreign exchange turnover in the respective financial centers: New York, London, Frankfurt, Tokyo, Zurich, etc. Th ...
Internationalization of the RMB and Historical Precedents
... It is surprisingly difficult to come up with a proxy for size, depth, or development that is available for all the financial centers. We have opted to use as our primary measure data on foreign exchange turnover in the respective financial centers: New York, London, Frankfurt, Tokyo, Zurich, etc. Th ...
... It is surprisingly difficult to come up with a proxy for size, depth, or development that is available for all the financial centers. We have opted to use as our primary measure data on foreign exchange turnover in the respective financial centers: New York, London, Frankfurt, Tokyo, Zurich, etc. Th ...
Euro
The euro (sign: €; code: EUR) is the official currency of the eurozone, which consists of 19 of the 28 member states of the European Union: Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia, and Spain. The currency is also officially used by the institutions of the European Union and four other European countries, as well as unilaterally by two others, and is consequently used daily by some 337 million Europeans as of 2015. Outside of Europe, a number of overseas territories of EU members also use the euro as their currency.Additionally, 210 million people worldwide as of 2013 use currencies pegged to the euro. The euro is the second largest reserve currency as well as the second most traded currency in the world after the United States dollar.As of August 2014, with more than €995,000,000,000 in circulation, the euro has the highest combined value of banknotes and coins in circulation in the world, having surpassed the U.S. dollar.Based on International Monetary Fund estimates of 2008 GDP and purchasing power parity among the various currencies, the eurozone is the second largest economy in the world.The name euro was officially adopted on 16 December 1995. The euro was introduced to world financial markets as an accounting currency on 1 January 1999, replacing the former European Currency Unit (ECU) at a ratio of 1:1 (US$1.1743). Physical euro coins and banknotes entered into circulation on 1 January 2002, making it the day-to-day operating currency of its original members. While the euro dropped subsequently to US$0.8252 within two years (26 October 2000), it has traded above the U.S. dollar since the end of 2002, peaking at US$1.6038 on 18 July 2008. Since late 2009, the euro has been immersed in the European sovereign-debt crisis which has led to the creation of the European Financial Stability Facility as well as other reforms aimed at stabilising the currency. In July 2012, the euro fell below US$1.21 for the first time in two years, following concerns raised over Greek debt and Spain's troubled banking sector. As of June 2015, the euro–dollar exchange rate stands at ~ US$1.10.