Topic
Currency
About: Currency is a research topic. Over the lifetime, 26697 publications have been published within this topic receiving 485370 citations. The topic is also known as: monetary unit & unit of money.
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115 citations
TL;DR: Mundell et al. as discussed by the authors presented a plan for a European currency with limited exchange rate flexibility based on Laffer's Laffer-Laffer argument and the theory of optimal regional association.
Abstract: Foreword Robert A Mundell Participants Introduction Harry G Johnson and Alexander K Swoboda Part 1: The Economics of Fixed Exchange Rates 1. Two Arguments for Fixed Rates Arthur B Laffer Comments Gottfried Haberler, Bela Balassa 2. The Flexibility of the Gold-Exchange Standard and Its Limits Jurg Niehans 3. The Price-Specie-Flow Mechanism and the Gold Exchange Standard: Some Exploratory Empiricism Relating to the Endogeneity of Country Money Balances Thomas J Courchene 4. The Dual Currency System Revisited Ronald I McKinnon Part 2: The Economics of Common Currency Areas 5. Some Early Views on Monetary Integration Thomas Guggenheim 6. The Theory of Optimum Regional Associations Herbert G Grubel 7. Uncommon Arguments for Common Currencies Robert A Mundell 8. Policy Conflict, Inconsistent Goals and the Co-ordination of Economic Policies Alexander K Swoboda 9. A Plan for a European Currency Robert A Mundell Comment Bela Balassa 10. The Impact of External Markets for National Currencies on Central Bank Reserves Robert Z Aliber 11. Joint Balance: Capital Mobility and the Monetary system of a Currency Area Sven W Arndt 12. Optimum Currency Areas and Latin America Alexandre Kafka Part 3: The Economics of Flexible Exchange Rates 13. The US Balance of Payments: Freedom or Controls Gottfried Haberler 14. Flexing the International Monetary System: The Case for Gliding Parities Richard N Cooper 15. Specific Proposal for Limited Exchange Rate Flexibility William Fellner 16. Flexible Exchange Rates and Traded Goods Prices: The Role of Oligopoly Pricing in the Canadian Experience Robert M Dunn, Jr. 17. The Optimal Rate of Devaluation Ruben Almonacid Manuel Guitian. Index
115 citations
TL;DR: This article analyzed the impact of exchange rate flexibility on credit markets during periods of large capital inflows and found that bank credit grows more rapidly and its composition tilts to foreign currency in economies with less flexible exchange rate regimes.
Abstract: The prospects of expansionary monetary policies in the advanced countries for the foreseeable future have renewed the debate over policy options to cope with large capital inflows that are, at least partly, driven by low interest rates in the financial centers. Historically, capital flow bonanzas have often fueled sharp credit expansions in advanced and emerging market economies alike. Focusing primarily on emerging markets, we analyze the impact of exchange rate flexibility on credit markets during periods of large capital inflows. We show that bank credit grows more rapidly and its composition tilts to foreign currency in economies with less flexible exchange rate regimes, and that these results are not explained entirely by the fact that the latter attract more capital inflows than economies with more flexible regimes. Our findings thus suggest countries with less flexible exchange rate regimes may stand to benefit the most from regulatory policies that reduce banks' incentives to tap external markets and to lend/borrow in foreign currency; these policies include marginal reserve requirements on foreign lending, currency-dependent liquidity requirements, and higher capital requirement and/or dynamic provisioning on foreign exchange loans.
115 citations
Posted Content•
TL;DR: The authors developed a model in which governments' financing needs exceed the socially optimal level because public resources are diverted to serve the narrow interests of the group in power From a social welfare perspective, this results in undue pressure on the central bank to extract seigniorage Monetary policy also suffers from an expansive bias, owing to the authorities' inability to precommit to price stability.
Abstract: We develop a model in which governments' financing needs exceed the socially optimal level because public resources are diverted to serve the narrow interests of the group in power From a social welfare perspective, this results in undue pressure on the central bank to extract seigniorage Monetary policy also suffers from an expansive bias, owing to the authorities' inability to precommit to price stability Such a conjecture about the fiscal-monetary policy mix appears quite relevant in Africa, with deep implications for the incentives of fiscally heterogeneous countries to form a currency union We calibrate the model to data for West Africa and use it to assess proposed ECOWAS monetary unions Fiscal heterogeneity indeed appears critical in shaping regional currency blocs that would be mutually beneficial for all their members In particular, Nigeria's membership in the configurations currently envisaged would not be in the interests of other ECOWAS countries unless it were accompanied by effective containment on Nigeria's financing needs
115 citations
Abstract: This paper examines whether currency trading volume is informative, and under what circumstances. Specifically, we use transactions data to test whether trades occurring when trading intensity is high are more informative - dollar for dollar - than trades occurring when intensity is low. Theory admits both possibilities, depending primarily on the posited information structure. We present what we call a hot-potato model of currency trading, which explains why low-intensity trades might be more informative. In the model, the wave of inventory-management trading among dealers following innovations in order flow generates an inverse relationship between intensity and information content. Empirically, low-intensity trades are more informative, supporting the hot-potato hypothesis."
115 citations