Die hollowing-out Hypothese, auch bekannt unter den Bezeichnungen (two) corner solutions oder bipolar view, besagt, dass für Staaten mit weitgehend ungehindertem Kapitalverkehr nur Ecklösungen, also entweder extrem feste oder sehr flexible Wechselkursregime, langfristig tragbar sind. Mitte der...

The concept of trade openness is broadly applied as a potential predictor in numerous empirical studies, despite the fact that no commonly accepted approach of measuring openness has been developed. The most widely applied (‘traditional’) openness indices are not able to accurately calculate...

This paper explores the relationship between economic growth and the welfare state. We argue that: (i) the institutional constraints set by the international monetary system may be at least as effective determinants of growth differentials between countries as the different dimensions of their...

El dólar continúa desempeñando un papel central en el comercio y los mercados financieros internacionales. La dependencia de los mercados mayoristas de corto plazo (repos, papel comercial, certificados de depósito, swaps) para obtener financiación en dólares hace especialmente vulnerables...

El dólar continúa desempeñando un papel central en el comercio y los mercados financieros internacionales. La dependencia de los mercados mayoristas de corto plazo (repos, papel comercial, certificados de depósito, swaps) para obtener financiación en dólares hace especialmente vulnerables...

The approach is based on the finding that new generations of currency crises theories always had developed ex post after popular currency crises. Discussing the main theories of currency crises shows their disparity: The First Generation of currency crises models argues based on the assumption...

Since the beginning, central banks have used a wide range of instruments to achieve their ultimate purpose of price stability. One measure in the authorities’ toolbox is a foreign exchange market intervention. The discussion about this instrument has come a long way. So far, the discussion...

Recent theory on exchange rate dynamics suggests that the mere announcement of regime switching from floating to fixed rates at a given future date triggers a reduction in exchange rate volatility during the interim period. Using a Markov-switching GARCH model this paper estimates the volatility...

In August 1998 the Russian foreign exchange market and financial system collapsed. As a consequence the rouble devaluated in real terms against the currencies of the main trade partners, generating an output push in the agri-food sector. This improved the financial health of most producer, thus...