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We develop a two-country New Keynesian model with endogenous currency substitution and financial frictions to examine the impact on a small developing economy of a stablecoin issued in a large foreign economy. The stablecoin provides households in the domestic economy with liquidity services and...
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Virginia and NBER).The correlation between capital inflows and outflows has increased substantially over time in a sample of … imports), which reduces the correlation between capital inflows and outflows. In the context of a two-country model with 8 … shocks we show that the theoretical impact of financial and trade globalization on the correlation between capital inflows …
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This paper examines the extent to which foreign direct investment (FDI) affects child labor. Using 1995 data for 145 countries, we find that, contrary to common fears, FDI is negatively correlated with child labor. This effect, however, disappears when controlling for per capita income. After...
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Cryptocurrency is gaining popularity worldwide, with some countries already starting to regulate and accept … cryptocurrency in their financial services. Malaysia’s Securities Commission (SC) announced in October 2021 that over MYR 16 billion … engaged in cryptocurrency in the first place. This study aims to provide insight into Malaysian investors’ perceptions by …
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