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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TL;DR: A diagnosis of the laws and balance sheets of the monetary authorities in Argentina, Bosnia, Bulgaria, Estonia, Hong Kong and Lithuania is presented in this article, where deception was employed by the US and the IMF during the Indonesian currency board debate (1998) as a means to engineer a political regime change.
Abstract: A diagnosis of the laws and balance sheets of the monetary authorities in Argentina, Bosnia, Bulgaria, Estonia, Hong Kong and Lithuania is presented. With the exception of Bosnia, all employ active monetary policies and engage in sterilization. Accordingly, they are not currency boards. The methods used to dismantle the Argentine system in 2001, prior to its eventual abandonment, are presented. An evaluation of the Hong Kong system (1997-1998) suggests that its so-called currency board was not a party to counter-speculation in the stock market. Evidence is presented to show how deception was employed by the US and the IMF during the Indonesian currency board debate (1998) as a means to engineer a political regime change.
98 citations
TL;DR: This paper showed that bank assets are more liquid in extreme regimes at both ends of the line, i.e. pure floating exchange rate regimes at one end and currency boards and dollarised economies at the other end, than in intermediate regimes.
Abstract: Combining panel data on bank liquidity at the individual level and data on their macroeconomic environment, for a sample of commercial banks in emerging countries between 1995 and 2004, we show that there exists a ‘bank liquidity smile across exchange rate regimes’. In extreme regimes at both ends of the line, i.e. for pure floating exchange rate regimes at one end and currency boards and dollarised economies at the other end, bank assets are more liquid than in intermediate regimes.
98 citations
TL;DR: In this article, the authors investigate whether capital market imperfections constrain investment during an emerging market financial crisis, and find that only exporters with foreign ownership increased their capital significantly.
98 citations
TL;DR: This paper showed that sovereign ratings do not predict currency crises and are instead downgraded ex-post, while the likelihood of currency crisis and the implied probability of sovereign default are not closely linked in emerging markets post-1994.
Abstract: We revisit the question whether sovereign ratings predict financial crises. In line with previous studies, we find that ratings do not predict currency crises and are instead downgraded ex-post. However, the likelihood of currency crisis and the implied probability of sovereign default are not closely linked in emerging markets post-1994. When debt crises are defined as sovereign distress – when spreads are higher than 1000 basis points or 10 percentage points – we find that access to international capital markets is reduced by half. In addition, although sovereign distress events last for typically 5.2 consecutive months, they can persist for longer periods up to nine quarters. Finally, lagged ratings and ratings changes, including negative outlooks and credit watches, are useful in anticipating sovereign distress.
98 citations
01 Jan 2011
TL;DR: In this article, the authors argue that the business model for Iceland is not viable and that with most of the banking system assets and liabilities denominated in foreign currency, and with a large amount of short-maturity foreign currency liabilities, Iceland needs a foreign currency lender of last resort and market maker of last-resort to prevent funding illiquidity from bringing down the Icelandic banking system.
Abstract: Iceland has, in a very short period of time, created an internationally active banking sector that is vast relative to the size of its very small economy. Iceland also has its own currency. This chapter argues that this ‘business model’ for Iceland is not viable. With most of the banking system’s assets and liabilities denominated in foreign currency, and with a large amount of short-maturity foreign currency liabilities, Iceland needs a foreign currency lender of last resort and market maker of last resort to prevent funding illiquidity or market illiquidity from bringing down the banking system.
98 citations