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Competing Bimetallic Ratios: Amsterdam, London and Bullion Arbitrage in the Mid-18th Century

Nogues-Marco, Pilar - C.E.P.R. Discussion Papers - 2013

This article analyzes the stability of bimetallism for countries operating in integrated bullion markets who enact different legal ratios. I articulate a new theoretical framework to demonstrate that two countries can both be bimetallic only if they coordinate their legal ratios. The theoretical...

Persistent link: https://www.econbiz.de/10011084296

Drivers of Structural Change in Cross-Border Banking Since the Global Financial Crisis

Bremus, Franziska; Fratzscher, Marcel - C.E.P.R. Discussion Papers - 2014

importance of regulatory arbitrage as a driver of cross-border bank flows since the global financial crisis. However, in the euro … area, arbitrage in capital stringency was linked to lower cross-border lending since the crisis. …

Persistent link: https://www.econbiz.de/10011145418

Boom-Busts in Asset Prices, Economic Instability and Monetary Policy

Bordo, Michael D; Jeanne, Olivier - C.E.P.R. Discussion Papers - 2002

The link between monetary policy and asset price movements has been of perennial interest to policy makers. In this Paper we consider the potential case for pre-emptive monetary restrictions when asset price reversals can have serious effects on real output. First, we provide some historical...

Persistent link: https://www.econbiz.de/10005504739

Inertia in Taylor Rules

Driffill, John; Rotondi, Zeno - C.E.P.R. Discussion Papers - 2007

The inertia found in econometric estimates of interest rate rules is a continuing puzzle. Many reasons for it have been offered, though unsatisfactorily, and the issue remains open. In the empirical literature on interest rate rules, inertia in setting interest rates is typically modelled by...

Persistent link: https://www.econbiz.de/10005067434

Benefits and Spillovers of Greater Competition in Europe: A Macroeconomic Assessment

Bayoumi, Tamim; Laxton, Doug; Pesenti, Paolo - C.E.P.R. Discussion Papers - 2004

Using a general-equilibrium simulation model featuring nominal rigidities and monopolistic competition in product and labour markets, this Paper estimates the macroeconomic benefits and international spillovers of an increase in competition. After calibrating the model to the euro area vs. the...

Persistent link: https://www.econbiz.de/10005791863

Risk Arbitrage in Takeovers

Cornelli, Francesca; Li, David Daokui - C.E.P.R. Discussion Papers - 1998

The paper studies the role of risk arbitrage in takeover contests. We show that arbitrageurs have an incentive to …

Persistent link: https://www.econbiz.de/10005504384

Arbitrage, Hedging and Financial Innovation

Davidson, Malcolm - C.E.P.R. Discussion Papers - 1996

I present a simple model in which it is possible that opening a new market makes everybody worse off. Unlike previous examples in the literature, the analysis does not rely on relative price changes of different consumption goods. This is shown in a standard framework in which uninformed traders...

Persistent link: https://www.econbiz.de/10005504789

Why Does the 'Law of One Price' Fail? A Case Study

Haskel, Jonathan; Wolf, Holger C - C.E.P.R. Discussion Papers - 1999

We use retail transaction prices for a multinational retailer to examine the extent and permanence of violations of the law of one price (LOOP) for identical products sold in a variety of countries. We find median deviations of twenty to fifty percent. The differences are not systematic across...

Persistent link: https://www.econbiz.de/10005497930

A Theory of Slow-Moving Capital and Contagion

Acharya, Viral V; Shin, Hyun Song; Yorulmazer, Tanju - C.E.P.R. Discussion Papers - 2009

making investments today and waiting for arbitrage opportunities in future is the combination of occasional fire sales and … fire sales in other types that are fundamentally unrelated, provided arbitrage activity in these investments is sourced …

Persistent link: https://www.econbiz.de/10004980209

Toxic Arbitrage

Foucault, Thierry; Kozhan, Roman; Tham, Wing Wah - C.E.P.R. Discussion Papers - 2014

High frequency arbitrage opportunities sometimes arise when the price of one asset follows, with a lag, changes in the … suppliers to the risk of being picked off by arbitrageurs. Hence, more frequent toxic arbitrage opportunities and a faster … triangular arbitrage opportunities in the FX market. In our sample, a 1% increase in the likelihood that a toxic arbitrage …

Persistent link: https://www.econbiz.de/10011083979