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Trilemmas and Trade-Offs : Living with Financial Globalisation

Obstfeld, Maurice - 2015

This paper evaluates the capacity of emerging market economies (EMEs) to moderate the domestic impact of global financial and monetary forces through their own monetary policies. Those EMEs that are able to exploit a flexible exchange rate are far better positioned than those that devote...

Persistent link: https://www.econbiz.de/10013029952

A Key Currency View of Global Imbalances

Ito, Hiro - 2019

. The dollar zone groups economies that produce well over half of global GDP. The euro zone now includes almost all of … of the DM/euro from northwestern Europe to Europe and beyond.Global imbalances differ from a currency perspective. In the …-alignment of third currencies. What if the renminbi becomes a key currency alongside the dollar and the euro? Already some emerging …

Persistent link: https://www.econbiz.de/10012893452

Does Sovereign Risk in Local and Foreign Currency Differ?

Amstad, Marlene - 2018

Historically, sovereign debt in local currency has been considered safer than debt in foreign currency. Yet the literature offers scant theoretical or empirical guidance as to why such a gap exists, or why it appears to have slowly and steadily diminished for all regions over the past two...

Persistent link: https://www.econbiz.de/10012924033

China's Evolving External Wealth and Rising Creditor Position

Ma, Guonan - 2009

China's emergence as a major player in world trade is well known, but its rising role in global finance is perhaps underappreciated. China is the second largest creditor in the world today, with a net creditor position of exceeding 30% of GDP in 2007. In this paper, we test the importance of...

Persistent link: https://www.econbiz.de/10013156914

Interpreting TARGET2 Balances

Cecchetti, Stephen G. - 2014

peripheral Europe. These same data suggest that banks headquartered outside the euro area, particularly UK banks, boosted TARGET2 …

Persistent link: https://www.econbiz.de/10013064804

Commodity Price Risk Management and Fiscal Policy in a Sovereign Default Model

Lopez-Martin, Bernabe - 2017

Commodity prices are an important driver of fiscal policy and the business cycle in many developing and emerging market economies. We analyze a dynamic stochastic small-open-economy model of sovereign default, featuring endogenous fiscal policy and stochastic commodity revenues. The model...

Persistent link: https://www.econbiz.de/10012960198

Recent RMB Policy and Currency Co-Movements

McCauley, Robert N. - 2018

This study investigates how variation in the determinants of the renminbi's daily fixing since the August 2015 exchange rate reform maps on to variation in the co- movement of the renminbi with regional and other emerging market currencies. We first identify three post-reform periods of RMB...

Persistent link: https://www.econbiz.de/10012916966

An Intermediation-Based Model of Exchange Rates

Malamud, Semyon - 2018

We develop a general equilibrium model with intermediaries at the heart of international financial markets. In our model, intermediaries bargain with their customers and extract rents for providing access to foreign claims. The behavior of intermediaries, by tilting state prices, generates an...

Persistent link: https://www.econbiz.de/10012908612

FX Intervention and Domestic Credit : Evidence from High-Frequency Micro Data

Hofmann, Boris - 2019

We employ a rarely available high-frequency micro dataset to study the impact of foreign exchange intervention on domestic credit growth. We find that sterilised purchases of dollars by the central bank dampens the flow of new domestic corporate loans in Colombia. Slowing the pace of currency...

Persistent link: https://www.econbiz.de/10012890369

Safe Assets : Made, Not Just Born

McCauley, Robert N. - 2019

Official reserve managers have a big stake in the debate over safe assets: their portfolios just about define such assets. This paper conveys the message that reserve managers need not worry about a shortage of safe assets. The debate turns first on whether demand for dollar safe assets will...

Persistent link: https://www.econbiz.de/10012891874