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This paper develops a theory of international currency portfolios that holds in general equilibrium, and that is … short (long) position in foreign currency. (4) A fiscal theory of exchange rate determination is compatible with general … equilibrium in a two-country world. (5) Equilibria are determinate when both fiscal and monetary policy are passive …
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This paper develops a theory of international currency portfolios that holds in general equilibrium, and that is …
Persistent link: https://www.econbiz.de/10012677715
This paper provides a broad empirical examination of the major currencies' roles in international capital markets, with a special emphasis on the first year of the euro. A contribution is made as to how to measure these roles, both for international financing as well as for international...
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