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 …

exchange markets, but it typically last only a few seconds. "Free lunch" is in the form of (a) negative spreads in a currency … pair and (b) triangular arbitrage relationship involving three currency pairs. The latter occur much more often than the … simultaneously take place on both sides of ask and bid (or three currency trades in case of triangular arbitrage) occur more often …

interest rate in response to inflation and either the output or the unemployment gap, for the euro/dollar exchange rate with …

euro might in the future rival or surpass the dollar as the world's leading international reserve currency appears to … 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 …

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 …

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 …

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 … a currency peg, would all work towards raising the optimal euro shares, with the last factor being quantitatively the …