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This paper analyzes institutional arrangements for exchange rate systems and reviews what we know. It looks at the foreign exchange market, different balance of payment situations in which countries find themselves and the necessary exchange rate adjustments. It studies the options that are...
Persistent link: https://www.econbiz.de/10010273093
Prior to the 2008 financial crisis there was much debate about global trade imbalances. Prima facie, the imbalances seem a significant problem. However, acknowledging that would question mainstream economics' celebratory stance toward globalization. That tension prompted an array of explanations...
Persistent link: https://www.econbiz.de/10010424306
programs do not attract capital inflows. Existing studies fail to address the effects of selection into IMF programs, which … of this capital flight is the medicine (the Fund program), not the disease (the economic downturn necessitating the IMF …
Persistent link: https://www.econbiz.de/10012776110
, during which policymakers tend to build reserve buffers, constrain capital mobility, and limit exchange rate flexibility. In … later stages, alongside flexible exchange rates, open capital accounts and smaller reserve buffers, crisis incidence is … system, including building a strong global financial safety net and developing a framework for coping with capital flows …
Persistent link: https://www.econbiz.de/10012871908
We propose a model of endogenous, persistent coordination on the international medium of exchange. An asset becomes the dominant international medium because it is widely held, and remains widely held because it is dominant. The country issuing the dominant asset is a net debtor, but earns an...
Persistent link: https://www.econbiz.de/10012864421
A large number of interpretations have been proposed for current global imbalances, with a variety of future scenarios for world economy. The perspective here adopted tries to be fully respectful of the assumption of global economic interdependence as well as to cope with the complexity of a...
Persistent link: https://www.econbiz.de/10014222406
The antecedent studies have designed new funding with the intellectual capital money (IKM) upon trading the … intellectual capital (IK) to ensure unimpeded access to it and spur its generation and exploitation. This piece examines the static … exchange rate fluctuation. In contrast, the dynamic study clarifies that the IKM funding is the negative capital residue R …
Persistent link: https://www.econbiz.de/10014346507
Tiny changes in the American monetary policy can have dramatic effects on the rest of the world because of dollar's double role of national and international currency. This is the Triffin dilemma. The paper shows how it works through three examples: price of commodities, dollarization, and the...
Persistent link: https://www.econbiz.de/10008648332
This paper shows, using a three-country life-cycle model, that a contractionary U.S. monetary policy shock has weaker effects on output in an old country than in a young country. In response to the shock, despite a larger fall in consumption in the old country, investment there decreases by less...
Persistent link: https://www.econbiz.de/10013239091
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...
Persistent link: https://www.econbiz.de/10011605254