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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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TL;DR: The authors argued that the International Monetary Fund, the institution responsible for coordinating the stability of foreign exchange rates, is ill-equipped to handle the widespread use of Bitcoins into the foreign exchange market and highlighted the inability of the Fund to intervene in the event of a speculative attack on a currency by Bitcoin users.
Abstract: This paper examines the potentially destabilizing effects of emerging digital currencies on the international foreign currency exchange. Specifically, it examines “Bitcoin,” a decentralized, partially anonymous, and largely unregulated digital currency that has become particularly popular in the last few years. The paper argues that the International Monetary Fund, the institution responsible for coordinating the stability of foreign exchange rates, is ill-equipped to handle the widespread use of Bitcoins into the foreign exchange market. It highlights the inability of the Fund to intervene in the event of a speculative attack on a currency by Bitcoin users. The paper concludes by suggesting two interpretations of the Fund’s incorporating document, the Articles of Agreement, which would allow it to intervene in the event of such an attack.

108 citations

Journal ArticleDOI
TL;DR: The authors examined the causes of financial crises in 31 emerging market countries during 1980-2001 and found that the vulnerability to crisis is exacerbated by situations involving large liabilities that permit sudden capital outflows.

108 citations

Journal ArticleDOI
TL;DR: This paper proposed a joint valuation framework, in which currency return variance and sovereign default intensity follow a bivariate diffusion with contemporaneous correlation, and showed that default intensity is much more persistent than currency return volatility.
Abstract: Using sovereign CDS spreads and currency option data for Mexico and Brazil, we document that CDS spreads covary with both the currency option implied volatility and the slope of the implied volatility curve in moneyness. We propose a joint valuation framework, in which currency return variance and sovereign default intensity follow a bivariate diffusion with contemporaneous correlation. Estimation shows that default intensity is much more persistent than currency return variance. The market price estimates on the two risk factors also explain the well-documented evidence that historical average default probabilities are lower than those implied from credit spreads.

107 citations

Journal ArticleDOI
TL;DR: This article found that countries face currency crises because of unsustainable macroeconomics fundamentals and contagion, and the probability of a crisis in a given country increases as the number of its neighboring countries in crisis increases implying the presence of neighborhood effects in the contagious spread of crisis.

107 citations

Posted Content
TL;DR: This paper analyzed traditional theories on the pros and cons of international monetary integration and suggested new approaches to the problem of international risk-sharing in the optimum currency area (OCA) problem.
Abstract: The East Asian economies are increasingly integrated in trade and direct investment. More than 50 per cent of their foreign trade is with each other. Both the high growth and level of trade integration is similar to what the western European economies achieved in the 1960s. So, in the new millennium, the inevitable question arises: is East Asia also an optimum currency area (OCA)? Despite the apparent success of EMU, many writers familiar with the East Asian scene think not. Taking the seminal papers of Robert Mundell as the starting point, this article first analyses traditional theorizing on the pros and cons of international monetary integration and then suggests new approaches to the problem of international risk-sharing in OCAs.

107 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