With the euro's appearance in the world market, the competition between euro and dollar has become a hot-button issue. The author focuses on the movements of the euro/dollar exchange rate and probes into the determinants of its exchange rate. Their competition regarding invoicing and reserves...

We document the triangular relationship formed by the strength of the US dollar, cross-border bank lending in dollars and deviations from covered interest parity (CIP). A stronger dollar goes hand-in-hand with bigger deviations from CIP and contractions of cross-border bank lending in dollars....

The covered interest rate parity (CIP) condition is a fundamental arbitrage relationship in international finance. In this chapter, we review its breakdown during the Global Financial Crisis and its continued failure in the subsequent decade. We review how to measure CIP deviations, discuss the...

The covered interest rate parity (CIP) condition is a fundamental arbitrage relationship ininternational finance. In this chapter, we review its breakdown during the Global FinancialCrisis and its continued failure in the subsequent decade. We review how to measure CIPdeviations, discuss the...

The covered interest rate parity (CIP) condition is a fundamental arbitrage relationship in international finance. In this chapter, we review its breakdown during the Global Financial Crisis and its continued failure in the subsequent decade. We review how to measure CIP deviations, discuss the...