Using new data on currency invoicing for Belgian firms, we analyze how firms make their currency choice, for both … staggered price setting with endogenous currency choice. Our structural specification provides a new test of the allocative … consequences of nominal rigidities, by estimating the treatment effect of foreign-currency price stickiness on the dynamic response …

additional factors, a commodity currency factor and a "world" factor based on trading volumes, fits currency basket correlations …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 …

The modern notion of an international currency involves use in areas of international finance and trade that extend … article, we provide evidence suggesting a recent rise in the use of the dollar, and fall of the use in the euro, with similar … patterns manifesting across all these aspects of international currency use …

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

The euro has arisen as a credible eventual competitor to the dollar as leading international currency, much as the … major currencies in the reserve holdings of the world's central banks. Significant factors include: size of the home country …'s currency share around .9). The equation correctly predicts out-of-sample a (small) narrowing in the gap between the dollar and …

currencies. Making various assumptions on expected currency returns and the variance-covariance structure, we assess how the euro …-free) currency. (ii) The optimum portfolios show a much lower weight for the euro than is observed. This suggests that the euro may … currency peg, would all work towards raising the optimal euro shares, with the last factor being quantitatively the most …

estimate a weight on the preceding year's currency share around .9). The advent of the euro …persists into the future the euro may surpass the dollar as leading international reserve currency …rival or surpass the dollar as the world's leading international reserve currency appears to depend on …

This paper documents the evidence for a productivity based model of the dollar/euro real exchange rate over the 1985 … the Johansen (1988) and Stock-Watson (1993) procedures. We find that each percentage point in the US-Euro area …