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: In this article, the authors present a simple model of currency crises which is driven by the interplay between the credit constraints of private domestic firms and the existence of nominal price rigidities.
445 citations
TL;DR: In this article, the authors examined which factors help predict the occurrence of a reversal or a currency crisis, and how these events affect macroeconomic performance in low and middle-income countries, and found that an exchange rate crash is associated with a fall in output growth and a recovery thereafter.
Abstract: This paper studies large reductions in current account deficits and exchange rate depreciations in low- and middle-income countries. It examines which factors help predict the occurrence of a reversal or a currency crisis, and how these events affect macroeconomic performance. Both domestic factors, such as the low reserves, and external factors, such as unfavorable terms of trade, are found to trigger reversals and currency crises. The two types of events are, however, distinct; an exchange rate crash is associated with a fall in output growth and a recovery thereafter, while for reversals there is no systematic evidence of a growth slowdown.
443 citations
TL;DR: In this article, the authors provide a baseline general equilibrium model of optimal monetary policy among interdependent economies with monopolistic firms and nominal rigidities, and show that optimal monetary rules in a world Nash equilibrium lead to less exchange rate volatility relative to both inward-looking rules and discretionary policies, even when the latter do not suffer from any inflationary bias.
443 citations
TL;DR: The average monthly volatility of returns on Bitcoin is higher than for gold or a set of foreign currencies in dollars, but the lowest monthly volatility for Bitcoin are less than the highest monthly volatilities for gold and the foreign currencies as discussed by the authors.
441 citations
TL;DR: In this paper, the authors investigate how monetary policy should be conducted in a two-region general equilibrium model with monopolistic competition and price stickiness, and propose a simple welfare criterion based on the utility of the consumers that can be used to evaluate monetary policy.
441 citations