NBER WORKING PAPER SERIES 1880-1913 vs. 1972-1997
... Over the last ten years, these phenomena have started to be addressed in the economics literature. Eichengreen and Hausmann (1997) argued that the danger of exchange rate fluctuations in the face of foreign currency borrowing might oblige many countries to adopt hard currency pegs. They coined the t ...
... Over the last ten years, these phenomena have started to be addressed in the economics literature. Eichengreen and Hausmann (1997) argued that the danger of exchange rate fluctuations in the face of foreign currency borrowing might oblige many countries to adopt hard currency pegs. They coined the t ...
Foreign Exchange Risk Management Practices
... became more exposed, on a different level with the exchange rate differentiation, than what they had been during the previous system with an inflexible exchange rate. The SEK depreciated against foreign currencies after the introduction of the floating exchange rate. This favoured the exporting comp ...
... became more exposed, on a different level with the exchange rate differentiation, than what they had been during the previous system with an inflexible exchange rate. The SEK depreciated against foreign currencies after the introduction of the floating exchange rate. This favoured the exporting comp ...
Current Research Journal of Economic Theory 4(4): 120-131, 2012 ISSN: 2042-485X
... optimal currency area. The study also emphasizes the alternative techniques of adjustment to asymmetric disturbances for economies in the sub-region. The findings reveal that there is relatively high degree of symmetry in the responses of the economies to external disturbances, while about 90% of th ...
... optimal currency area. The study also emphasizes the alternative techniques of adjustment to asymmetric disturbances for economies in the sub-region. The findings reveal that there is relatively high degree of symmetry in the responses of the economies to external disturbances, while about 90% of th ...
the credit-anstalt myth
... The Great Depression comprised the most severe economic and financial turmoil that the world has ever experienced.1 It was also a global phenomenon which culminated in a steep decline in industrial and agricultural production, persistent unemployment, and a fall in world trade. This was also the per ...
... The Great Depression comprised the most severe economic and financial turmoil that the world has ever experienced.1 It was also a global phenomenon which culminated in a steep decline in industrial and agricultural production, persistent unemployment, and a fall in world trade. This was also the per ...
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... adjustment of these global imbalances is inevitable. The key question is whether it will occur wholly through market forces, including the “political market” for trade protection, or at least partly through preemptive policy actions by the major countries. The impact on global growth, international ...
... adjustment of these global imbalances is inevitable. The key question is whether it will occur wholly through market forces, including the “political market” for trade protection, or at least partly through preemptive policy actions by the major countries. The impact on global growth, international ...
DP2014/01 Exchange rates, expected returns and risk Anella Munro April 2014
... across currency areas. Lustig and Verdelhan (2007) extend that analysis and show that portfolios of high interest currencies depreciate when consumption is low, while portfolios of low interest currencies provide hedging of consumption risk. Those papers support the idea that risk needs to be endog ...
... across currency areas. Lustig and Verdelhan (2007) extend that analysis and show that portfolios of high interest currencies depreciate when consumption is low, while portfolios of low interest currencies provide hedging of consumption risk. Those papers support the idea that risk needs to be endog ...
Exchange rate overshooting and the costs of floating April 2004 1 Michele Cavallo
... costs of a currency crisis in a country with a high level of foreign currency debt. The key mechanism of the model is the presence of a margin constraint (as in Aiyagari and Gertler, 1999) imposed on the domestic country. We find the margin constraint a simple and convenient way of modeling the sudd ...
... costs of a currency crisis in a country with a high level of foreign currency debt. The key mechanism of the model is the presence of a margin constraint (as in Aiyagari and Gertler, 1999) imposed on the domestic country. We find the margin constraint a simple and convenient way of modeling the sudd ...
Unconventional Central Bank Measures for Emerging
... global economic and financial crisis. The Federal Reserve and the European Central Bank, among others, have implemented unprecedented easing measures that have escalated in number, magnitude, and novelty. 2 These measures are unconventional in the sense that they are a clear departure from the polic ...
... global economic and financial crisis. The Federal Reserve and the European Central Bank, among others, have implemented unprecedented easing measures that have escalated in number, magnitude, and novelty. 2 These measures are unconventional in the sense that they are a clear departure from the polic ...
Federal Reserve Notes and National Bank Notes
... The Federal Reserve Act also created a Federal Reserve Board to “consist of seven members, including the Secretary of the Treasury and the Comptroller of the Currency.” (Sec. 10) The Federal Reserve Board did not conduct any of the actual banking business of the Federal Reserve System. Its primary r ...
... The Federal Reserve Act also created a Federal Reserve Board to “consist of seven members, including the Secretary of the Treasury and the Comptroller of the Currency.” (Sec. 10) The Federal Reserve Board did not conduct any of the actual banking business of the Federal Reserve System. Its primary r ...
International Reserves and Foreign Currency Liquidity
... This book is an update of the International Reserves and Foreign Currency Liquidity: Guidelines for a Data Template (Guidelines) issued in 2001. It sets forth the underlying framework for the Data Template on International Reserves and Foreign Currency Liquidity (Reserves Data Template) and provides ...
... This book is an update of the International Reserves and Foreign Currency Liquidity: Guidelines for a Data Template (Guidelines) issued in 2001. It sets forth the underlying framework for the Data Template on International Reserves and Foreign Currency Liquidity (Reserves Data Template) and provides ...
Scotland analysis: Currency and monetary policy
... history of Scotland and the whole of the United Kingdom (UK) – whether to stay in the UK, or leave it and become a new, separate and independent state. In the event of a vote for independence, one of the most important decisions facing Scotland would be how to arrange its currency and wider macroeco ...
... history of Scotland and the whole of the United Kingdom (UK) – whether to stay in the UK, or leave it and become a new, separate and independent state. In the event of a vote for independence, one of the most important decisions facing Scotland would be how to arrange its currency and wider macroeco ...
International Liquidity and Exchange Rate Dynamics Xavier Gabaix Matteo Maggiori January 19, 2014
... We provide a theory of exchange rate determination based on capital flows in imperfect financial markets. In our model, exchange rates are volatile and largely disconnected from traditional macroeconomic fundamentals over the medium term; they are instead governed by financial forces. Global shifts ...
... We provide a theory of exchange rate determination based on capital flows in imperfect financial markets. In our model, exchange rates are volatile and largely disconnected from traditional macroeconomic fundamentals over the medium term; they are instead governed by financial forces. Global shifts ...
Zimbabwe’s Black Market for Foreign Exchange Albert Makochekanwa
... many sub-Saharan African countries have been trying to reduce the parallel premium through devaluation and the adoption of auction exchange rate systems. Similarly, Zimbabwe since independence has been implementing a foreign exchange liberalization through devaluations. For instance, the Zimbabwean ...
... many sub-Saharan African countries have been trying to reduce the parallel premium through devaluation and the adoption of auction exchange rate systems. Similarly, Zimbabwe since independence has been implementing a foreign exchange liberalization through devaluations. For instance, the Zimbabwean ...
NBER WORKING PAPER SERIES LIQUIDITY TRAPS: HOW TO AVOID THEM AND
... Once in a liquidity trap, there are two means of escape. The first is to use expansionary fiscal policy. The second is to lower the zero nominal interest rate floor. This second option involves paying negative interest on government 'bearer bonds' -- coin and currency, that is 'taxing money', as adv ...
... Once in a liquidity trap, there are two means of escape. The first is to use expansionary fiscal policy. The second is to lower the zero nominal interest rate floor. This second option involves paying negative interest on government 'bearer bonds' -- coin and currency, that is 'taxing money', as adv ...
... currencies to a purposive degrowth transition vs. involuntary degrowth in the context of a long-term crisis of global capitalism. The existing track record of local currencies is arguably more relevant to the former scenario, and their role in the second is more speculative. Furthermore, by offering ...
This PDF is a selection from a published volume from... National Bureau of Economic Research
... a balance-of-payments and financial crisis, and huge costs in terms of output and employment. Unlike those of other countries in the region, the crisis was not caused by fiscal imbalances but was triggered by a deteriorating international environment, a misaligned exchange rate, and a weak financial ...
... a balance-of-payments and financial crisis, and huge costs in terms of output and employment. Unlike those of other countries in the region, the crisis was not caused by fiscal imbalances but was triggered by a deteriorating international environment, a misaligned exchange rate, and a weak financial ...
Implementation Gold Dinar: Is It Feasible?
... The characteristic of Gold Dinar also ensure the value of this type of currency. Gold Dinar cannot be inflated by printing more of it because it is natural resources not like fiat money where it can be printed when needed; it cannot be devalued by government decree, and unlike paper currency it is a ...
... The characteristic of Gold Dinar also ensure the value of this type of currency. Gold Dinar cannot be inflated by printing more of it because it is natural resources not like fiat money where it can be printed when needed; it cannot be devalued by government decree, and unlike paper currency it is a ...
Reserve currency
A reserve currency (or anchor currency) is a currency that is held in significant quantities by governments and institutions as part of their foreign exchange reserves. The reserve currency is commonly used in international transactions and often considered a hard currency or safe-haven currency. People who live in a country that issues a reserve currency can purchase imports and borrow across borders more cheaply than people in other nations because they don't need to exchange their currency to do so.By the end of the 20th century, the United States dollar was considered the world's most dominant reserve currency, and the world's need for dollars has allowed the United States government as well as Americans to borrow at lower costs, granting them an advantage in excess of $100 billion per year. However, the U.S. dollar's status as a reserve currency, by increasing in value, hurts U.S. exporters.