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Sudden Stops and Optimal Foreign Exchange Intervention

Davis, Scott; Devereux, Michael B.; Yu, Changhua - 2022

We model sudden stops in a small open economy as rare discrete events precipitated by increases in the world risk-free rate. When external debt is large, the model exhibits multiple equilibria, one where external debt and consumption remain high, and one with a collapse in external debt and...

Persistent link: https://www.econbiz.de/10014090776

Credit Booms, Financial Crises and Macroprudential Policy

Gertler, Mark; Kiyotaki, Nobuhiro; Prestipino, Andrea - 2022

We develop a model of banking crises which Is consistent with two important features of the data: First, banking crises are usually preceded by credit booms. Second, credit booms often do not result in a crisis. That is, there are "good" booms as well as "bad" booms in the language of Gorton and...

Persistent link: https://www.econbiz.de/10013307160

International Reserves and the Global Financial Crisis

Dominguez, Kathryn M.E; Hashimoto, Yuko; Ito, Takatoshi - 2021

This study examines whether pre-crisis international reserve accumulations, as well as exchange rate and reserve policy decisions made during the global financial crisis, can help to explain cross-country differences in post-crisis economic performance. Our approach focuses not only on the total...

Persistent link: https://www.econbiz.de/10013311925

From the Great Moderation to the Global Crisis : Exchange Market Pressure in the 2000s

Aizenman, Joshua; Lee, Jaewoo; Sushko, Vladyslav - 2021

This paper investigates the factors explaining exchange market pressures (EMP) and the hoarding and use of international reserves (IR) by emerging markets during the 2000s, as the Great Moderation turned to the 2008-9 global crisis and great recession. According to our results, both financial...

Persistent link: https://www.econbiz.de/10013311931

Domestic and Multilateral Effects of Capital Controls in Emerging Markets

Pasricha, Gurnain Kaur - 2015

Using a novel, high frequency dataset on capital control actions in 16 emerging market economies (EMEs) from 2001 to 2012, we provide new insights into the domestic and multilateral effects of capital controls. Increases in capital account openness reduce monetary policy autonomy and increase...

Persistent link: https://www.econbiz.de/10013030625

Will the Euro Eventually Surpass the Dollar as Leading International Reserve Currency?

Chinn, Menzie David - 2012

currency? Unlike ten years ago, there now exists a credible competitor: the euro. This paper econometrically estimates … (we estimate a weight on the preceding year's currency share around .9). The advent of the euro interrupts the continuity … equation correctly predicts a (small) narrowing in the gap between the dollar and euro over the period 1999-2004. Whether the …

Persistent link: https://www.econbiz.de/10013105149

The Rise of the Dollar and Fall of the Euro as International Currencies

Maggiori, Matteo - 2018

article, we provide evidence suggesting a recent rise in the use of the dollar, and fall of the use in the euro, with similar …

Persistent link: https://www.econbiz.de/10012906266

Currency Factors

Aloosh, Arash - 2019

We examine the ability of existing and new factor models to explain the comovements of G10- currency changes, measured using the novel concept of “currency baskets”, representing the overall movement of a particular currency. Using a clustering technique, we find a clear two-block structure...

Persistent link: https://www.econbiz.de/10012894993

Random Walk or a Run : Market Microstructure Analysis of the Foreign Exchange Rate Movements Based on Conditional Probability

Hashi, Yuko - 2010

Using tick-by-tick data of the dollar-yen and euro-dollar exchange rates recorded in the actual transaction platform, a …

Persistent link: https://www.econbiz.de/10012758602

The Euro May Over the Next 15 Years Surpass the Dollar as Leading International Currency

Chinn, Menzie David - 2010

The euro has arisen as a credible eventual competitor to the dollar as leading international currency, much as the … euro over the period 1999-2007. This paper updates calculations regarding possible scenarios for the future. We exclude the … the de facto financial center of the euro, more so than Frankfurt. We also assume that the dollar continues in the future …

Persistent link: https://www.econbiz.de/10012759417