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When money was made of gold and silver, individuals faced the problem of determining the intrinsic content of coins in … commodity money system: coin assaying. To that goal we build a model of search and matching in which agents trade using coins … coins for a fee. We consider two sources of imperfect information: counterfeit coins and clipping. With counterfeits we show …
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The purpose of this paper is to investigate why the choice of invoice currency under exchange rate uncertainty depends not only on expectations but also on history. The analysis is motivated by the fact that the U.S. dollar has historically been the dominant vehicle currency in developing...
Persistent link: https://www.econbiz.de/10012779585
The purpose of this paper is to investigate why the choice of invoice currency under exchange rate uncertainty depends not only on expectations but also on history. The analysis is motivated by the fact that the U.S. dollar has historically been the dominant vehicle currency in developing...
Persistent link: https://www.econbiz.de/10012466232
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This paper produces the first cross-country evidence on the relationship between the size of foreign exchange reserves and local currency internationalization using a sample of Switzerland, Japan and the UK. It finds that a high ratio of foreign exchange reserves to international reserves has a...
Persistent link: https://www.econbiz.de/10014154354