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The Euro as a Reserve Currency : A Challenge to the Pre-Eminence of the US Dollar?

Galati, Gabriele; Wooldridge, Philip D. - 2014

introduction of the euro greatly improved the functioning of euro financial markets. This paper investigates whether euro financial … markets have developed sufficiently to facilitate the emergence of the euro as a reserve currency on par with the US dollar …. We find that the liquidity and breadth of euro financial markets are fast approaching those of dollar markets, and as a …

Persistent link: https://www.econbiz.de/10014054281

From Turmoil to Crisis : Dislocations in the FX Swap Market Before and After the Failure of Lehman Brothers

Baba, Naohiko - 2013

This paper investigates dislocations in the foreign exchange (FX) swap market between the US dollar and three major European currencies. After the failure of Lehman Brothers in September 2008, deviations from covered interest parity (CIP) were negatively associated with the creditworthiness of...

Persistent link: https://www.econbiz.de/10013095699

Dollar Pricing Redux

Casas, Camila - 2017

A country's exchange rate is at the center of economic and political debates on currency wars and trade competitiveness. The real consequences of exchange rate fluctuations depend critically on how firms set prices in international markets. Recent empirical evidence has challenged the dominant...

Persistent link: https://www.econbiz.de/10012950251

Transmitting Global Liquidity to East Asia : Policy Rates, Bond Yields, Currencies and Dollar Credit

He, Dong - 2014

We review extant work on the transmission of monetary policy, both conventional and unconventional, of the major advanced economies to East Asia through monetary policy reactions, integrated bond markets and induced currency appreciation. We present new results on the growth of foreign currency...

Persistent link: https://www.econbiz.de/10013059558

Business Models and Dollar Funding of Global Banks

Aldasoro, Iñaki - 2018

Since the eurozone crisis, there has been a stark divergence between European banks and Japanese banks in their dollar uses and sources. We show that these shifts have implications for the price of dollar funding. We document a "Japan Repo Premium." Japanese banks pay a premium for repos with US...

Persistent link: https://www.econbiz.de/10012924144

Dollar Borrowing, Firm-Characteristics, and FX-Hedged Funding Opportunities

Gambacorta, Leonardo - 2020

We explore the link between firms' dollar bond borrowing and their FX-hedged funding opportunities, as reflected in a positive corporate basis (the relative cost of local to synthetic currency borrowing). Consistent with previous research, we first document that firms substitute domestic for...

Persistent link: https://www.econbiz.de/10012840120

Ageing, Property Prices and Money Demand

Nishimura, Kazuo G. - 2014

When the baby boomers joined the workforce and started saving, money supply and property prices entered a rising trajectory. We conclude that demography was the long-run driver of this process, basing our argument on data from 22 advanced economies for the 1950-2010 period. According to our life...

Persistent link: https://www.econbiz.de/10013065513

Foreign Currency Borrowing, Balance Sheet Shocks and Real Outcomes

Hardy, Bryan - 2019

Emerging market firms frequently borrow in foreign currency (FX), but their assets are often denominated in domestic currency. This behavior leads to an FX mismatch on firms balance sheets, which can harm their net worth in the event of a depreciation. I use a large, unanticipated, and exogenous...

Persistent link: https://www.econbiz.de/10012896700

On Central Bank Interventions in the Mexican Peso/Dollar Foreign Exchange Market

Garcia-Verdu, Santiago - 2014

In recent years the Bank of Mexico has made a series of rules-based interventions in the peso/dollar foreign exchange market. We assess the effectiveness of two specific interventions that occurred in periods of great stress for the Mexican economy. The aims of these two interventions were,...

Persistent link: https://www.econbiz.de/10013059559

The Dollar Exchange Rate as a Global Risk Factor : Evidence from Investment

Avdjiev, Stefan - 2018

Exchange rate fluctuations influence economic activity not only via the standard trade channel, but also through a financial channel, which operates through the impact of exchange rate fluctuations on borrowers' balance sheets and lenders' risk-taking capacity. This paper explores the...

Persistent link: https://www.econbiz.de/10012928838