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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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Journal ArticleDOI
01 Dec 1990
TL;DR: In this paper, the aggregate demand for M1 in the countries participating in the exchange rate mechanism (ERM) of the European Monetary System is shown to be a stable function of ERM-wide income, inflation, interest rates, and the ECU-dollar exchange rate.
Abstract: Aggregate demand for M1 in the countries participating in the exchange rate mechanism (ERM) of the European Monetary System is shown to be a stable function of ERM-wide income, inflation, interest rates, and the ECU-dollar exchange rate. Particularly noteworthy is the rapid dynamic adjustment, in contrast to the implausibly slow adjustment implied by most single-country estimates. These results, if robust, suggest that, even at the present stage of economic and monetary integration, a European central bank might be able to implement monetary control more effectively than the individual national central banks.

113 citations

Posted Content
TL;DR: Panama's monetary system has the following characteristics: (1) The U. S. dollar is the medium of exchange, while the balboa, the national currency, is a unit of account and exists only as silver coins; (2) capital markets are free, with almost no government intervention or restrictions on banking transactions, financial flows, or interest rates; and (3) there is no central bank as mentioned in this paper.
Abstract: Panama’s monetary system has the following characteristics: (1) The U. S. dollar is the medium of exchange, while the balboa, the national currency, is a unit of account and exists only as silver coins; (2) capital markets are free, with almost no government intervention or restrictions on banking transactions, financial flows, or interest rates; (3) many international banks operate in Panama; and (4) there is no central bank. As such, the economy of Panama can be considered a ‘‘control case’’ in a simulation experiment, where the monetary and macroeconomic equilibrium process can be studied without financial sector distortions, government intervention, or central bank policies. Hence, Panama’s experience reveals the ‘‘experimental market answer’’ to many macroeconomic issues, and the central importance of financial integration.

112 citations

Journal ArticleDOI
TL;DR: A fixed exchange rate is a specific case of an active crawling peg where the pre-announced rate of change in the exchange rate was zero as discussed by the authors, which is the case in many countries in Latin America.
Abstract: As OF FEBRUARY 28, 1983, ninety-four countries are classified as having a fixed exchange rate regime: 38 are pegged to the U.S. dollar, 13 to the French franc, 14 to the Special Drawing Right, and 24 to different baskets of currencies. The choice of a fixed exchange rate peg implies a specific monetary discipline, namely monetary growth equal to the growth rate of the currency (or currencies) to which a country is pegged. Monetary policy is thus subject to an exchange rate rule rather than to either a monetary growth rule or alternatively to discretionary policy. A fixed exchange rate is a specific case of an active crawling peg where the preannounced rate of change in the exchange rate is zero. Active crawling peg rules whereby the exchange rate is adjusted downward by a preannounced amount over a specified period of time have been practiced in various places, particularly in Latin America. Recent experiments include Argentina beginning December 1978, Brazil during the 1980 calendar year, Chile from February 1978 to June 1979, Jamaica from May 1978 to May 1979, Portugal from August 1977 to June 1979, and Uruguay beginning October 1978.1 At times, the prean-

112 citations

Journal ArticleDOI
TL;DR: The authors investigated whether legal restrictions on international capital flows are associated with greater currency stability and found evidence that restrictions on capital flows do not effectively insulate economies from currency problems; rather, countries with less restrictive capital controls and more liberalized regimes appear to be less prone to speculative attacks.

112 citations

Posted Content
TL;DR: A country that has substantial international liquidity (large foreign exchange reserves and a ready source of foreign currency loans) is less likely to be the object of a currency attack as discussed by the authors, which is the key to self-protection.
Abstract: International economic crises will continue to occur in the future as they have for centuries past. The rapid spread of the 1997 crisis in Asia and of the 1982 crisis in Latin America showed how shifts in market perceptions can suddenly bring trouble to countries even when there has been no change in objective conditions. More recently, the sharp jump in emerging market interest rates after Russia's August 1998 default underlined the vulnerability of all emerging market economies to increases in investors' aversion to risk. Emerging market countries that want to avoid the devastating effects of such crises must protect themselves. They cannot depend on the International Monetary Fund or other international organizations nor expect that a new global financial architecture' will make the world economy less dangerous. Taking steps to protect themselves requires more than avoiding those bad policies that make a currency crisis inevitable. The process of contagion makes even the virtuous vulnerable to currency runs. Liquidity is the key to self-protection. A country that has substantial international liquidity -- large foreign exchange reserves and a ready source of foreign currency loans -- is less likely to be the object of a currency attack. Substantial liquidity also permits a country that is attacked from within or without to defend itself better and to make more orderly adjustments. The challenge is to find ways to increase liquidity at reasonable cost.

112 citations


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Performance
Metrics
No. of papers in the topic in previous years
YearPapers
20244
20231,221
20222,371
2021730
2020944
20191,044