The dominance of the U.S. dollar in the global financial system remains the key pillar of international trade and monetary stability but faces growing challenges in a rapidly changing world. Historically rooted in the Bretton Woods system and the establishment of the petrodollar system, the...

Research and policy debates on monetary policy, financial stability and regulations encompass the overall financial system where nonbanks/banks fund each other. However, we find the traditional use of the leverage metric to be myopic as it reflects only bank balance sheet data. We focus on...

This paper sheds light on the linkages between banking crises and the effectiveness of short-run loans in reducing bank failure, bank runs, and potential looting by bankers. It develops an overlapping generations framework which incorporates the possibility that an anticipating liquidity...

Although the sovereign debt crisis is worldwide considered as a main disorder affecting indebted countries' economic recovery, its analysis is still incomplete and has so far failed to provide a satisfactory explanation of its origin and of the way it can be successfully addressed. The aim of...

This paper aims at clarifying the concept of Islamic Financial System (IFS), as part of the whole Islamic economic system and its viability to be applied nowadays. The paper included exploring the nature, origin, distinctive criteria, unique features, goals of IFS and the means to achieve them,...

In this paper, we discuss the modern history of monetarism and its alternatives, as well as the changing empirical relationship of various measures of money and inflation. After demonstrating that previous naïve correlations between money and inflation as established in the 20th century...

Financial lubrication in markets is indifferent to margin posting via money or collateral; the relative price(s) of money and collateral matter. Some central banks are now a major player in the collateral markets. Analogous to a coiled spring, the larger the quantitative easing(QE) efforts, the...

This paper focuses on how changes in financial plumbing of the markets may impact themonetary policy options as central banks contemplate lift off from zero lower bound (ZLB). Under the proposed regulations, banks will face leverage ratio constraints. As a result of quantitative easing (QE),...

The antecedent studies have designed a novel financial mechanism in which, upon trading intellectual capital, the economy creates or receives money to ensure unimpeded capital access and spur its generation and exploitation. This piece summarises some mathematical aspects, allowing us to apply...

Precedent studies have designed a novel financial mechanism ensuring others access and exploit intellectual capital while protecting the right holder’s profit. By the mechanism, the national central bank would fund the generation and adoption of intellectual capital, e.g., a license fee, and...