Sharp exchange rate depreciations in the East Asian crisis countries (Indonesia, Korea, and Thailand) raised doubts about the efficacy of increasing interest rates to defend the currency. Using a standard monetary model of exchange rate determination, this paper shows that tighter monetary...

The aim of the present paper is to highlight the optimum currency areas (OCAs) theory contribution to the development of European monetary unification. In order to point out its implications, we structured our research on two parts. The first one illustrates the main achievements and limits of...

This paper examines the link between spillovers of currency carry trade returns and U.S. market returns. Following Tse and Zhao (2012), this paper hypothesizes that the magnitude of spillovers of currency carry trade returns is positively correlated with market risk sentiment and, therefore, has...

Using 482 US Dollar and Euro denominated bonds issued by 72 sovereigns, we examine the dynamic sources of time-series and cross-sectional variations in \textit{market-wide liquidity} of sovereign bonds as a novelty in the sovereign fixed income literature. Vector autoregression analysis shows...

This paper discusses within a common analytical framework the logical and analytical links between theories of exchange rate crises that model the abandonment of a peg as an optimizing decision by rational policy makers, and theories that focus on the dynamics of speculative attacks when...

The purpose of this paper is to highlight the level of European financial integration, based on the academic literature analyzing a comprehensive set of indicators and methodologies. We structured our research on sections that present a theoretical approach of the instruments that will be used...

This paper presents an innovative yet practical framework to assess corporate sector vulnerability and the links to exchange rates and financial crises that bridges the gap between corporate finance and macroeconomic analysis. This framework missing describing how changes in aggregate value of...

Motivated, on the one hand, by the belief that the Fed controls the short-term rate through open market operations, and on the other, by quot;the lack of convincing proof that this is what happens,quot; Hamilton (1997) suggested that more convincing evidence of the liquidity effect could be...

With the reinterpretation of repurchase agreements (repos) by the tax authority and the revision of the national bank law in 1997, allowing the Swiss national bank (SNB) to use repos as monetary policy instrument, the prerequisites for the development of a Swiss franc repo market were given. The...