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Foreign exchange market

About: Foreign exchange market is a research topic. Over the lifetime, 6661 publications have been published within this topic receiving 153384 citations. The topic is also known as: forex & FX.


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Journal ArticleDOI
TL;DR: In the aftermath of World War II, the dollar emerged as the uncontested leader among international currencies, a development of historic significance as mentioned in this paper, and the share of the pound in known foreign exchange holdings of of different institutions had been more than twice the franc and the mark, and much greater than the dollar.
Abstract: In the aftermath of World War II, the dollar emerged as the uncontested leaderamong international currencies, a development of historic significance. In 1899,the share of the pound in known foreign exchange holdings of officialinstitutionshadbeenmorethantwicethetotalofthenextnearestcompetitors,the franc and the mark, and much greater than the dollar.

143 citations

Posted Content
01 Jan 2008
TL;DR: The authors analyzes the role of the real exchange rate in the growth process, the channels through which the real rate influences other variables, and policies useful (and not useful) for governing real rate.
Abstract: The real exchange rate was not at the center of the first generation of neoclassical growth models, nor was it prominent among the policy prescriptions that flowed from those models. Recent analyses, in contrast, have paid it more attention. This paper analyzes the role of the real exchange rate in the growth process, the channels through which the real exchange rate influences other variables, and policies useful (and not useful) for governing the real rate. An appendix provides econometric evidence supportive of the emphases in the text.

143 citations

Posted Content
TL;DR: In this article, the authors describe the result and the methodology of updating the IMF's nominal and real effective exchange rate weights on the basis of trade data over 1999-2001, showing that the United States and developing countries (most notably China) have grown in their importance in global trade, while Japan and the European Union have declined.
Abstract: This paper describes the result and the methodology of updating the IMF's nominal and real effective exchange rate weights on the basis of trade data over 1999-2001. The underlying framework is an updated version of the IMF's current effective exchange rate calculation, which uses weights largely based on 1989-1991 data. Since then, substantial changes have occurred in international trade relations, warranting a recalculation of effective exchange rate indices on the basis of new trade patterns. Updated weights show that the United States and developing countries (most notably China) have grown in their importance in global trade, while Japan and the European Union have declined, with substantial implications for the path of the dollar and exchange rate effects of emerging market crises since 1995.

142 citations

Journal ArticleDOI
TL;DR: This paper examined the effects of mood on the behavior of traders or decision makers in financial markets and found that traders in a good mood had an inferior trading performance (losing money) compared to those in a neutral or bad mood (making profit).

142 citations

Posted Content
01 Jan 1992
TL;DR: In this article, the authors investigate whether monetary policy and banking supervision should be separated, or not, and investigate the role of the Central Bank as lender of last resort and the introduction of deposit insurance.
Abstract: This paper investigates whether monetary policy and banking supervision should be separated, or not. It starts with an account of the historical evolution of the Central Banks micro-function (banking supervision). The role of the lender of last resort and the introduction of deposit insurance is discussed. There is currently a diversity of institutional arrangements, but the differences are found to be greater in appearance than in reality. The main argument of divorcing the monetary from the regulatory authority is that the combination of functions might lead to a conflict of interest. This conflict can arise in different ways. The most important instance is that interest rates are held down because of concern with the ¶health¶ of the banking system, when purely monetary considerations suggest higher rates. It is argued that this conflict between ¶regulatory¶ and ¶monetary¶ objectives depends to some extent on the structure of the banking and financial systems (i.e. whether banks are dependent on wholesale or retail markets for short term funding). A First argument against separation is the role of the Central Bank in the payment system, in particular with respect to preventing systemic risk. The massive intra-day credit exposures in large value payment systems could give rise to settlement failure(s), which in turn could generate a systemic crisis. Settlement risk is therefore increasingly an area of supervisory concern for Central Banks. In so far as the Central Bank as lender of last resort is likely to support a failing participant, it is assuming the risks and effectively becoming the implicit guarantor of the system. Although Central Banks implement risk reduction policies, some risks originate beyond the settlement system, e.g. in foreign exchange trading, securities transactions and interbank transactions. It is argued that Central Banks should have a regulatory and oversight role in the payment system, although it does not follow that they should also operate them. Turning to the broader concern of the Central Bank of systemic stability, it is claimed that the Central Bank usually has to use its lender of last resort function not only in cases of liquidity difficulties, but also where the solvency of banks is uncertain. A cross-country survey of 104 bank failures is assembled in an appendix. We focus on the provision of funding for rescues: central bank, deposit insurance, government or other banking system should lie with the agency which pays if, and when , banks are to be rescued. So long as rescue and insurance is undertaken on an implicit Central Bank basis, then the Central Bank would naturally want to undertake regulation and supervision. However, there is a trend towards using tax-payer money for bank rescues which strengthens the case for separation of the monetary and supervisory functions and establishment of a government agency for the latter. It would, however, be difficult to have a complete division, since the Central Bank would generally remain the only source of immediate funding.

141 citations


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Performance
Metrics
No. of papers in the topic in previous years
YearPapers
2023158
2022202
2021157
2020171
2019209
2018198