a special emphasis on the first year of the euro. A contribution is made as to how to measure these roles, both for … identification of changes in the role of the euro during 1999 compared to the aggregate of euro predecessor currencies, net of intra … -euro area assets/liabilities, before stage 3 of EMU. A number of key factors determining the currency distribution of …

Policymakers fear the potentially destabilizing impact of fickle global investors on emerging markets. Euro area … currency denomination and issuer-level risk factors. First, euro area investors exhibit a strong home currency bias that … manifests itself both as a cross-sectional preference and in the form of relatively stable flows to Euro-denominated bonds over …

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 …