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Monetary Policy with Reserves and CBDC : Optimality, Equivalence, and Politics

Niepelt, Dirk - 2021

We analyze policy in a two-tiered monetary system. Noncompetitive banks issue deposits while the central bank issues reserves and a retail CBDC. Monies differ with respect to operating costs and liquidity. We map the framework into a baseline business cycle model with “pseudo wedges” and...

Persistent link: https://www.econbiz.de/10013314899

How Shocks Affect International Reserves? A Quasi-Experiment of Earthquakes

Jinjarak, Yothin; Noy, Ilan; Ta, Quy - 2021

We evaluate the change in international reserves in the aftermath of significant external shocks. We examine the response of international reserves to shocks by using a quasi-experimental setup and focusing on earthquakes. The estimation is done on a panel of 103 countries over the period...

Persistent link: https://www.econbiz.de/10013315174

Hoarding of International Reserves : Mrs Machlup's Wardrobe and the Joneses

Cheung, Yin-Wong; Qian, Xingwang - 2021

Motivated by the observed international reserve hoarding behavior in the post-1997 crisis period, we explore the Mrs Machlup's wardrobe hypothesis and the related keeping-up-with-the-Joneses argument. It is conceived that, in addition to psychological reasons, holding a relatively high level of...

Persistent link: https://www.econbiz.de/10013316903

Has the euro affected the choice of invoicing currency?

Ligthart, Jenny E.; Werner, Sebastian E. V. - 2010

We present a new approach to study empirically the effect of the introduction of the euro on currency invoicing. Our … home currency invoicing after the introduction of the euro. In addition, the euro as a vehicle currency has overtaken the … role of the US dollar in Norwegian imports. The econometric analysis shows a significant effect of euro introduction above …

Persistent link: https://www.econbiz.de/10010275698

Renminbising China's foreign assets

Cheung, Yin-Wong; Ma, Guonan; McCauley, Robert N. - 2010

Since the 2008 global financial crisis, China has rolled out a number of initiatives to actively promote the international role of the renminbi and to denominate more of its international claims away from the US dollar and into the renminbi. This paper discusses the factors shaping the prospects...

Persistent link: https://www.econbiz.de/10010270641

Inflation targeting by debtor central banks in emerging market economies

Löffler, Axel; Schnabl, Gunther; Schobert, Franziska - 2010

Given buoyant capital inflows and managed exchange rates the majority of emerging market central banks have continued to accumulate massive foreign reserves. If left unsterilized, the liquidity expansion can threaten domestic macroeconomic stability. To contain domestic inflation these central...

Persistent link: https://www.econbiz.de/10010270652

A cross-country empirical analysis of international reserves

Cheung, Yin-Wong; Ito, Hiro - 2009

Using data from more than 100 economies for the period of 1975 to 2005, we conduct an extensive empirical analysis of the determinants of international reserve holdings. Four groups of determinants, namely, traditional macro variables, financial variables, institutional variables, and dummy...

Persistent link: https://www.econbiz.de/10010271960

Hoarding of international reserves: Mrs Machlup's wardrobe and the joneses

Cheung, Yin-Wong; Qian, Xingwang - 2007

Motivated by the observed international reserve hoarding behavior in the post-1997 crisis period, we explore the Mrs Machlup's wardrobe hypothesis and the related keeping up with the Joneses argument. It is conceived that, in addition to psychological reasons, holding a relatively high level of...

Persistent link: https://www.econbiz.de/10010276301

Limits of monetary policy autonomy by East Asian debtor central banks

Löffler, Axel; Schnabl, Gunther; Schobert, Franziska - 2012

Due to buoyant capital inflows East Asian central banks with exchange rate targets accumulate foreign reserves and thereby increase surplus liquidity. East Asian central banks with more flexible exchange rate regimes also face surplus liquidity that mainly emanates from past accumulation of...

Persistent link: https://www.econbiz.de/10010280973

The Impact of Yuan Internationalization on the Euro-Dollar Exchange Rate

Benassy-Quere, Agnes; Forouheshfar, Yeganeh - 2013

the euro-dollar exchange rate, within a three-country, three-currency portfolio model. Our static model shows that the … euro-dollar rate, whatever the exchange-rate regime of China. Moving to a dynamic, stock-flow framework, we show that the …

Persistent link: https://www.econbiz.de/10010292492