Determinants of the currency composition of foreign exchange reserves are examined for both industrial and developing countries. Empirical results indicate that the currency composition of reserves during the period 1976-85 has been influenced by each country's exchange rate arrangements, trade...

Several developing countries have found that a combination of exchange rate and financial reform can result in capital inflows that make it difficult, if not impossible, for the authorities to control the growth of monetary aggregates. This paper examines how financial reform can be integrated...

In the context of a flexible-price monetary exchange rate model and the assumption of uncovered interest parity, we obtain a measure of the fundamental determinant of exchange rates. Daily data for the European Monetary System are used to explore the importance of non-linearities in the...