AbstractThe following sections are included:IntroductionInterest Differentials, Carry Trades, and Worldwide InflationCarry Trades and International Monetary ReformA New International Monetary Agreement?The Supply Constraint on Bank CreditA Concluding Note on Stagflation in the United...

The international dollar standard is malfunctioning. Near zero U.S. short-term interest rates launch massive hot money outflows by carry traders into emerging markets (EM) in Asia and Latin America. Each EM central bank buys dollars to prevent its currency from appreciating but loses monetary...

In the United States, both private and governmental saving dropped sharply after 1980 in contrast to the preceding postwar decades. But investment in the America economy has held up quite well (except for the 2008 banking crisis) because of heavy borrowing from foreigners as manifested in the...

Instability in the world dollar standard, as most recently manifested in the US Federal Reserve's near-zero interest rate policy, has caused consternation in emerging markets with naturally higher interest rates. China has been provoked into speeding RMB “internationalization”; that is,...

This indispensable book provides a comprehensive analysis of monetary and financial integration in East Asia. It assesses the steps already taken toward financial integration and brings forward different proposals for future exchange rate arrangements in what has now become the world’s...

Japan still suffers a deflationary hangover from the great episodic yen appreciations of the 1980s into the mid-1990s. Money wages are still declining, and short-term interest rates remain trapped near zero. After Japan's "lost decade" from 1992 to 2002, however, output has begun to grow...