The literature on the determinants of the rate of current account reversion has been limited to examining the role of exchange rate regimes. We propose that the degree of coordination of wage bargaining affects the speed of current account adjustment. Our point estimates are economically and...

Media tone constructed from 7,000,000 articles from 2,000 global media and 800 social media sites predicts excess US dollar returns up to six months out of sample. Its predicted value contains information beyond those predicted by currency factors and business cycles. Our evidence collaborates...

We investigate the connections between some specific commodity prices and global macroeconomic performance in a two-stage approach. At the first stage we employ machine learning techniques to identify from a large set of globally traded commodities the ones with the strongest predictive power on...

This study examines the role of the Chinese renminbi (RMB) as an international anchor currency. After China abandoned its tight US dollar (USD) peg in 2005, the RMB found greater popularity as a reserve currency. This change in the RMB's role reflected China's growing presence in the global...

This study evaluates substitution of foreign currency balances in Estonia, a transition economy neighbouring countries participating in EMU. The focus is on substitution between dollar and euro balances in the three basic functions of money – unit of account, store of value and means of...

This study evaluates substitution of foreign currency balances in Estonia, a transition economy neighbouring countries participating in EMU. The focus is on substitution between dollar and euro balances in the three basic functions of money - unit of account, store of value and means of payment....

This study evaluates the magnitude of the permanent and the transitory components of currency substitution in the UK. The results indicate that the permanent component, the ratchet effect, accounted only for a small share while the aggregate temporary component, speculation, whose impact lasts...

This study examines the impacts of liquidity on equity returns in the euro area during the period 1987-2001. The main contribution of the study is that the money demand is carefully considered while estimating the liquidity. We provide evidence that in part the impact of money on equity returns...