Search results for " currency"
showing 10 items of 50 documents
Effects of the European Monetary Union on High-Technology Exports
2021
AbstractOur study estimates the effects of the European Monetary Union (EMU) on high-technology (HT) export and assesses the potential knowledge spillovers of such trade. Irrespective of the importance of the HT trade channel, none of the previous studies in the literature focus on the effects of a common currency on HT trade. Increasing trade in the HT sector may lead to more efficient use of resources and help countries to move towards a knowledge-based economy. Moreover, it may lead to higher overall growth. After considering multilateral resistances, pair fixed effects and bias correction in the preferred (three-way bias-corrected) model, EMU membership becomes negative and statisticall…
Essays in Macroeconomics: Growth, Macroeconomic Volatility and Currency Unions
2011
Essays in Macroeconomics: Growth, Macroeconomic Volatility and Currency Unions Essays in Macroeconomics: Growth, Macroeconomic Volatility and Currency Unions
The Economics of Monetary Union: The Theory of Optimum Currency Areas
2013
In the 1960s, the theory of Optimum Currency Areas (OCAs) emerged as a by-product of the theoretical debate between fixed and flexible exchange rates. The OCAs approach singles out an economic characteristic to define an economic domain where there is exchange rate fixity erga intra, while there is exchange rate flexibility erga extra. In an optimum currency area, exchange rates fixity prevails internally without any type of internal or external disequilibrium. Each single characteristic ensures that floating or regular adjustments in nominal exchange rates are neither necessary, efficient nor desirable for stabilisation purposes. The literature proposes several economic criteria: factor mo…
Pricing to market behaviour in European car markets
2003
Abstract This paper investigates PTM behaviour in European car markets for a period of great interest (1993–98), taking into account the role of invoicing currency. The results indicate that local currency price stability is a strong and pervasive phenomenon across products independently of the invoicing currency. The paper offers robustness checks, tests and arguments that justify the interpretation of this finding, at least in part, as evidence of PTM. It implies the existence of market segmentation and price discrimination, despite the completion of the single market programme on 1 January 1993.
The World Bank's Early Reflections On Development: A Development Institution Or A Bank?
2008
Until the late 1960s, the World Bank presented itself as an institution devoted to making sound and directly productive project loans. Yet, during its early years, discussions took place within the Bank regarding the possibility of issuing different types of loans, namely (i) loans aimed at tackling social issues (‘social loans’), and (ii) loans aimed at providing foreign currency to address disequilibria in the balance of payments (‘impact loans’). This paper brings together historical analysis and theories of organization development to study the housing issue as a case in point. The analysis reveals that the Bank was unwilling to lend for housing programmes not because these were not sou…
Determining the RMB Exchange Regime
2011
Although China has claimed since 2005 that it will move towards a more market-oriented system of managing its foreign exchange, it has remained, in part, a managed economic system. This chapter examines the relative importance of fundamentalist, chartist and currency arrangements in determining the RMB exchange regime using both traditional linear and non-linear artificial intelligence models. We find that the emphasis on the US dollar as a reference currency has declined. Fundamentalist forces are becoming strong determinants of the currency exchange. The genetic programming approach is among the best performing in minimizing forecasting error.
Estimating the Effect of Common Currencies on Trade: Blooming or Withering Roses?
2013
Abstract Using a gravity model and data on 182 countries worldwide, this paper estimates the effects of exchange rate volatility and currency unions on international trade for ten years spanning 1980 through 2010. We provide added confirmation and further strengthen the empirical findings in Rose (2000) prior to 1999, but we find a gradually diminishing Rose effect for the 2000-2010 period, when the Euro Zone is added to the currency union dummy. The rest of the coefficients generally comply in magnitude and sign with what is standard in the “gravity” literature. Our findings support a much stronger effect of a currency union on trade than the hypothetical effect of reducing exchange rate v…
Inflation in a virtual economy – a real or virtual threat?
2014
The aim of the paper is an analysis of the way and circumstances under which inflation can occur in a virtual economy. It is also an attempt to answer the question whether, and in what way virtual inflation may be related to inflation in the real economy. The article is conceptual, because in the present state of statistical data the effects of virtual economies are not carried out, or are generated in a very small number, which makes it impossible to make reliable calculations
Producer Prices in the Transition to a Common Currency
2006
We analyze producer price developments in the transition from a national exchange rate regime to a monetary union. The focus is on the European Economic and Monetary Union (EMU). Stylized facts witness about an exploding gaps in producer-price inflation during the years immediately following the completion of the EMU. Price convergence is found to be an important driver throughout the entire euro period (1999-2005), but with no significant differences in speed compared to the pre euro period. Productivity growth had its primary effect in the first years and effective exchange-rate changes in the later years of the euro period.
The Politicisation of Banking
1985
Growing government intervention in the international currency markets has distorted incentives and disguised risks. Rodney Atkinson, formerly an economist with Grindlay's Bank, argues that increasing state interference has led bankers to respond to political, not commercial, signals. Many bankers are now rewarded according to their ability to ‘work the system’ rather than for economic expertise.