While the practical policies toward the exchange rate of the Fed and the ECB are very similar, there is a major philosophical difference between the American view that governments have no business to worry about capital flows and exchange rates versus the European view that these things matter...

This paper summarizes key lessons learned from using models from microstructure finance to explain and forecast exchange rates. The first section is an executive summary, which outlines seven lessons that pertain to how different transaction-flow measures (e.g., interbank flows versus end-user...

Surging growth and rising interdependence of East-Asian economies during the last two decades have heightened interest in monetary and financial integration. From 1985 to 2005, the share of intra-regional trade in total trade for the South-East and East Asian region (including Japan) grew from...

The “impossible trinity” refers to the impossibility of the simultaneous presence of a fixed exchange rate regime, uncovered interest parity and the Central Bank?s control over the money supply. I apply this to Krugman?s (1979) balance of payments crisis model, where he argued that there is...

This paper studies the impact of a broadening of the SDR basket to the Chinese currency on the composition and volatility of the basket. Although, in the past, RMB inclusion would have had negligible impact due to its limited weight, a much more significant impact can be expected in the next...

Les annees quatre-vingt et quatre-vingt-dix sont marquees par un processus d’ouverture financiere internationale qui a d’abord touche les pays developpes avant d’atteindre les economies dites emergentes. Considerant les gains d’efficience lies a cette integration financiere, le Fonds...

En depit de pressions constantes, l’autorite monetaire de Hong Kong a neglige, a plusieurs reprises, les predictions de devaluation imminente a l’apogee de la crise financiere asiatique en 1997. Cette attitude peut etre mise en relation avec l’histoire monetaire de Hong Kong et sa position...

Cet article propose un examen empirique de l’echec du Plan de Stabilisation par le Change (PSC) mis en place sous l’impulsion du FMI en Turquie a partir de janvier 2000. Nous estimons un modele vectoriel a correction d’erreur a partir de donnees journalieres, afin d’evaluer...

Pendant les premieres annees de l'union monetaire, la faiblesse de l'euro a surpris la plupart des observateurs. Les explications se sont multipliees allant de fondamentaux tels que les differentiels de croissance anticipes aux facteurs psychologiques tels que les comportements gregaires, mais...

Dans cet article, nous testons la presence de contagion durant la crise financiere asiatique. A cet effet, nous proposons une nouvelle procedure qui consiste a tester la non-linearite des mecanismes de propagation des chocs estimes a travers un modele d’interdependance de long terme. Nous...