euro and the Chinese renminbi (RMB). It focuses on what we call China’s “dominance hypothesis”, i.e. whether the renminbi …

the world economy. This matter is settled by arguing that the global imbalances acted as a "handmaiden" to the 2008 …

On January 1,1999 euro became the currency for 11 member states of the European Union. Since then the dollar-euro … exchange rate has completed a full turning. Three years of depreciation of the euro followed by three years of appreciation … without wild fluctuations asks for an explanation which would adequately account for the position of the euro as an emerging …

Since EMU represents a currency area with a GDP level and a world market share comparable to the United States, it is … widely expected that the euro will become an important international currency. This paper suggests simple methods how to …. Estimates presented indicate that the euro may indeed lead to a significant decline in the market share of the dollar as an …

dollar and euro over the period 1999-2004. Whether the euro might in the future rival or surpass the dollar as the world …: the euro. This paper econometrically estimates determinants of the shares of major currencies in the reserve holdings of … the world's central banks. Significant factors include: size of the home country, inflation rate (or lagged depreciation …

Foreign exchange reserve accumulation has risen dramatically in recent years. The introduction of the euro, greater … 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 …

moving the US dollar, yen and euro in the intended direction at horizons of up to three months after G7 meetings, but not at …

traditional portfolio objectives as debt to reserve ratios decrease. We empirically estimate optimal dollar and euro shares for 24 … reserve ratios, introducing transactions demand has a relatively modest effect. We also find that euro and dollar bonds act as … in Asia and Latin America, while the euro is a better hedge for sudden stops in Emerging Europe. We reproduce …

world’s key currencies is very high, but the speed of the process is uncertain. As far as the euro is concerned, much will … dollar’s decline are the euro and the Chinese renminbi. The probability that the renminbi will eventually become one of the … result in radical steps towards fiscal and financial integration. If such steps are taken, the euro will secure both internal …