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.
Papers published on a yearly basis
Papers
More filters
TL;DR: In this article, two main areas of recent research dealing with the theory of monetary integration are reviewed: the analysis of the effects of disturbances on participating countries in a currency area, and reputational considerations.
Abstract: Research dealing with the theory of monetary integration is reviewed. After briefly describing the genesis of the theory as foreshadowed in work on optimum currency areas, the paper assesses two main areas of recent research — the analysis of the effects of disturbances on participating countries in a currency area, and reputational considerations. With regard to disturbances, the paper finds that it is difficult to draw clear-out inferences from theoretical work on the optimal degree of exchange rate management and from empirical studies on the effects of shocks. Work on reputational issues is found to suffer from conceptual problems and has generated empirical results that have not supported the hypothesis that participation in a currency area is a sufficient condition to enhance reputation.
168 citations
TL;DR: This article analyzed foreign participation in the bond markets of over 40 countries and found that foreign participation can improve foreign participation by reducing macroeconomic instability by reducing currency mismatches that can result in painful crises.
167 citations
TL;DR: In this article, the authors study the extent to which crashes in emerging market currencies are predictable using simple logit models based on lagged macroeconomic and financial data and calculate trading strategies in which an investor goes long or short in the currency depending on whether crash probabilities are low or high.
167 citations
Posted Content•
TL;DR: In this paper, the authors identify common characteristics among a variety of macroeconomic and financial variables for a large sample of currency crises in industrial countries and emerging market economies and carry out a similar analysis for each.
Abstract: The paper seeks to identify common characteristics among a variety of macroeconomic and financial variables for a large sample of currency crises in industrial countries and emerging market economies. It covers crises which culminated in large currency depreciation as well as those in which there was a substantial loss of foreign reserves. The analysis involves comparing the monthly or annual pattern of movement of the various macroeconomic and financial variables around the time of crisis to their behavior during tranquil periods. The robustness of the results is tested by subdividing the sample into different types of currency crises and carrying out a similar analysis for each.
167 citations
TL;DR: This paper employed a matching and propensity score methodology to address this issue in a panel analysis of developing countries and found that, after controlling for sample selection bias, countries with liberalized capital accounts experience a lower likelihood of currency crises.
Abstract: Are countries with unregulated capital flows more vulnerable to currency crises? Efforts to answer this question properly must control for “self selection” bias since countries with liberalized capital accounts may also have more sound economic policies and institutions that make them less likely to experience crises. We employ a matching and propensity score methodology to address this issue in a panel analysis of developing countries. Our results suggest that, after controlling for sample selection bias, countries with liberalized capital accounts experience a lower likelihood of currency crises. That is, when two countries have the same likelihood of allowing free movement of capital (based on historical evidence and a very similar set of economic and political characteristics)—and one country imposes controls and the other does not-- the country without controls has a lower likelihood of experiencing a currency crisis. This result is at odds with the conventional wisdom and suggests that the benefits of capital market liberalization for external stability are substantial.
166 citations