While up to the late 1990s Japanese foreign exchange intervention was fully sterilized, Japanese monetary authorities left foreign exchange intervention unsterilized when Japan entered the liquidity trap in 1999. According to previous research on foreign exchange intervention, unsterilized...

The target zone model by Krugman (1991) assumes that foreign exchange intervention targets exchange rate levels. We argue that the fit of this model depends on the stage of development of capital markets. Foreign exchange intervention of countries with highly developed capital markets is in line...

The paper discusses global imbalances under the aspect of an asymmetric world monetary system. It identifies the US and Germany as center countries with rising / high current account deficits (US) and surpluses (Germany). These are matched by current account surpluses of countries stabilizing...

Since the breakdown of the Bretton Woods System diverging current account positions in Europe have prevailed. While the Southern and Western European countries have tended to run current account deficits, the current accounts of the Central and Northern European countries, in particular Germany,...

Das Papier untersucht die Triebkräfte globaler und europäischer Leistungsbilanzungleichgewichte, die sich seit der Jahrtausendwende bis zur jüngsten Krise kontinuierlich vergrößert haben. Für Europa werden die Ursachen der Ungleichgewichte in den Bemühungen Deutschlands identifiziert nach...

Die Europäische Zentralbank hat im Zuge der Finanzkrise und der sich verschlechternden realwirtschaftlichen Entwicklung im Euroraum die Leitzinsen auf ein historisches Allzeittief gesenkt. Welche Risiken birgt die Niedrigzinspolitik? Nach Ansicht von Michael Schubert, Commerzbank AG, Frankfurt...

Since the breakdown of the Bretton Woods System diverging current account positions in Europe have prevailed. While the Southern and Western European countries have tended to run current account deficits, the current accounts of the Central and Northern European countries, in particular Germany,...

The European sovereign debt crisis revived the discussion concerning the pros and cons of exchange rate adjustment in the face of asymmetric shocks. Exit from the euro area is to regain rapidly international competitiveness. Exchange rate stability with structural reforms could be beneficial for...

China has been provoked into speeding renmnibi internationalization. But despite rapid growth in offshore financial markets in RMB, the Chinese authorities are essentially trapped into maintaining exchange controls—reinforced by financial repression in domestic interest rates—to avoid an...

The target zone model by Krugman (1991) assumes that foreign exchange intervention targets exchange rate levels. It is argued that the fit of this model depends inter alia on the stage of development of capital markets. Foreign exchange intervention of countries with highly developed capital...