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optimal allocations. Implications for a currency union in Europe are discussed …
Persistent link: https://www.econbiz.de/10014400828
Among emerging market currencies, the RMB holds the most potential to become widely used internationally, due to China‘s large economic size, diversified trade structure and network, macroeconomic stability, and high growth rates - both current and expected. Yet, foreign access to...
Persistent link: https://www.econbiz.de/10014396567
Persistent link: https://www.econbiz.de/10009615561
stability of invoicing currency patterns. The evidence also points to several novel facts. First, both the US dollar and the … has declined. Second, the euro is used as a vehicle currency in parts of Africa, and some European countries have seen … significant shifts toward euro invoicing. Third, as suggested by the dominant currency paradigm, countries invoicing more in US …
Persistent link: https://www.econbiz.de/10012299325
There is a vast body of literature estimating the impact of financial development on economic growth, inequality, and economic stability. A typical empirical study approximates financial development with either one of two measures of financial depth - the ratio of private credit to GDP or stock...
Persistent link: https://www.econbiz.de/10011436807
A cross-country comparative analysis shows that there is substantial room for further integration of China into global financial markets, especially in the case of the international bond market. A further successful liberalization of the Chinese bond market would encompass not only loosening...
Persistent link: https://www.econbiz.de/10011978420
It is challenging to explain the collapse in the price of subprime mortgage-backed securities (MBS) during the Financial Crisis of 2008, using the existing models of fire-sale. I present a model to demonstrate that fire-sales may happen even when there is a relatively sizable pool of natural...
Persistent link: https://www.econbiz.de/10012021779
This study investigates the nonlinear relationship between public debt and sovereign credit ratings, using a wide sample of over one hundred advanced, emerging, and developing economies. It finds that: i) higher public debt lowers the probability of being placed in a higher rating category; ii)...
Persistent link: https://www.econbiz.de/10012102166
The analysis of interconnectedness and contagion is an important part of the financial stability and risk assessment of a country's financial system. This paper offers detailed and practical guidance on how to conduct a comprehensive analysis of interconnectedness and contagion for a country's...
Persistent link: https://www.econbiz.de/10012122482
Persistent link: https://www.econbiz.de/10011281891