set of sovereign defaults and find that default events on local and foreign currency bonds are equally likely. However …, governments default under different economic and financial conditions depending on the currency in which bonds are issued. The … explained variation in default probability rises from 43% to 62% when we account for differences in currency denomination. We …

This paper provides insights into the determinants of currency choice in cross-border bank lending, such as bilateral … distance, financial and trade linkages to issuer countries of major currencies, and invoicing currency patterns. Cross …

On February 24-25, 2006 an international workshop on “Regional and International Currency Arrangements” was held in …, international currency arrangements. A number of papers and the contributions by the discussants presented at this workshop are … a World Currency?”; one more affirmative, the other more critical. In addition to the papers by Richard Cooper and …

We document that the currency denomination of the debt of developed country firms is strongly related to the … equivalent increase in the proportion of debt denominated in the corresponding currency. Consistent with the existence of fixed … costs of debt issuance, we find that the relationship between the currency denomination of debt and the geography of sales …

We assess the properties of currency value strategies based on real exchange rates in a cross-sectional portfolio … setting. We find that real exchange rates predict currency excess returns, but in a way that is inconsistent with the notion … of currency value because a high valuation level forecasts a relative appreciation of the foreign currency going forward …

We introduce a new measure of emerging market sovereign credit risk: the local currency credit spread, defined as the … spread of local currency bonds over the synthetic local currency risk-free rate constructed using cross-currency swaps. We … find that local currency credit spreads are positive and sizable. Compared with credit spreads on foreign currency …

stability of invoicing currency patterns. But the evidence also points to several novel stylised facts. First, both the US … the euro area has declined. Second, the euro is used as a vehicle currency in parts of Africa, and some European countries … have seen significant shifts toward euro invoicing. And third, as suggested by the dominant currency paradigm, countries …

stability of invoicing currency patterns. But the evidence also points to several novel stylised facts. First, both the US … the euro area has declined. Second, the euro is used as a vehicle currency in parts of Africa, and some European countries … have seen significant shifts toward euro invoicing. And third, as suggested by the dominant currency paradigm, countries …

stability of invoicing currency patterns. The evidence also points to several novel facts. First, both the US dollar and the … has declined. Second, the euro is used as a vehicle currency in parts of Africa, and some European countries have seen … significant shifts toward euro invoicing. Third, as suggested by the dominant currency paradigm, countries invoicing more in US …

Do governments default on debt denominated in their own currency? We introduce a new measure of sovereign credit risk …, the local currency credit spread, defined as the spread of local currency bonds over the synthetic local currency risk …-free rate constructed using cross currency swaps. We find that local currency credit spreads are positive and sizable. Compared …