Currency Substitution and Cross-Border Monetary Aggregation
Currency Substitution and Cross-Border Monetary Aggregation

Author: Mr.Timothy D. Lane

Publisher: International Monetary Fund

Published: 1992-10-01

Total Pages: 36

ISBN-13: 1451955049

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Is there a stable aggregate money demand relationship for Europe? If so, why, and if not, why not? These questions are important for the implementation of policy by a European central bank, as well as for the appropriate speed of transition to EMU. This paper addresses them in a multi-country empirical study of money demand for the G-7 countries during the period since 1973. It looks for evidence of currency substitution and tests the restrictions implied by cross-border aggregation within Europe.

Global Liquidity through the Lens of Monetary Aggregates
Global Liquidity through the Lens of Monetary Aggregates

Author: Kyuil Chung

Publisher: International Monetary Fund

Published: 2014-01-24

Total Pages: 49

ISBN-13: 1475514557

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This paper examines how the financial activities of non-financial corporates (NFCs) in international markets potentially affects domestic monetary aggregates and financial conditions. Monetary aggregates reflect, in part, the activities of NFCs, who channel capital market financing into the domestic banking system, thereby influencing funding conditions and credit availability. Periods of capital inflows are also those when the domestic currency is appreciating, and such periods of rapid exchange rate appreciation coincide with increases in the central bank’s foreign exchange reserves, increasing the stock of narrow money. The paper examines economic significance of cross-country panel data on monetary aggregates and other measures of non-core bank liabilities. Non-core liabilities that reflect the activities of NFCs reflect broad credit conditions and predict global trade and growth.

The Implications of Cross-Border Monetary Aggregation
The Implications of Cross-Border Monetary Aggregation

Author: Mr.Timothy D. Lane

Publisher: International Monetary Fund

Published: 1992-09-01

Total Pages: 22

ISBN-13: 1451959788

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Some recent studies suggest the possibility of estimating a stable aggregate demand-for-money relationship for the group of countries participating in the European Monetary System. These results are of particular relevance in connection with the task of setting policy targets for a European Central Bank. This paper uses a theoretical error-invariables framework to identify what is gained and what may be lost through cross-border aggregation of money demand. It provides an analytical basis for such studies, paying particular attention to currency substitution and international portfolio diversification.

Cross-Border Deposits and Monetary Aggregates in the Transition to EMU
Cross-Border Deposits and Monetary Aggregates in the Transition to EMU

Author: Mr.Carlo Cottarelli

Publisher: International Monetary Fund

Published: 1991-11-01

Total Pages: 60

ISBN-13: 1451853742

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This paper discusses the effect of cross-border deposits (CBDs) for the stability of the relation between monetary aggregates and nominal GDP in the five largest EC countries. The analysis is developed in terms of “information content” of alternative money definitions (including or excluding selected subsets of CBDs), derived from a multicountry simultaneous system of money demand equations. We show that in the most recent period traditional money aggregates have lost information value and that they are dominated by alternative money definitions that include CBDs, such as those based on the residency of the holder or on the currency of denomination.

Adjustment and Growth in the European Monetary Union
Adjustment and Growth in the European Monetary Union

Author: Francisco Torres

Publisher: Cambridge University Press

Published: 1993-10-21

Total Pages: 406

ISBN-13: 052144019X

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The Maastricht Treaty, signed in December 1991, set a timetable for the European Community's economic and monetary union (EMU) and clearly defined the institutional policy changes necessary for its achievement. Subsequent developments have demonstrated, however, the importance of many key issues in the transition to EMU that were largely neglected at the time. This volume reports the proceedings of a joint CEPR conference with the Banco de Portugal, held in January 1992. In these papers, leading international experts address the instability of the transition to EMU, the long-run implications of monetary union and the single market for growth and convergence in Europe. They also consider the prospects for inflation and fiscal convergence, regional policy and the integration of financial markets and fiscal systems. Attention focuses on adjustment mechanisms with differentiated shocks, region-specific business cycles and excessive industrial concentration and the cases for a two-speed EMU and fiscal federalism.

The Macroeconomics of International Currencies
The Macroeconomics of International Currencies

Author: Paul Mizen

Publisher: Edward Elgar Publishing

Published: 1996

Total Pages: 280

ISBN-13:

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A dozen studies examine the theoretical and empirical consequences of currency substitution, a growing phenomenon in world financial markets and an integral part of financial and exchange-rate developments since the collapse of the Bretton Woods agreement. Among the topics are measuring the co- circulation of currencies, seigniorage and the choice of currency, the yield curve and North American monetary policy, European financial markets, the demand for Deutsche marks before and after the fall of the Berlin Wall, and dollarization in transition economies and in Latin America. Annotation copyright by Book News, Inc., Portland, OR

Economic Dislocation and Recovery in Lebanon
Economic Dislocation and Recovery in Lebanon

Author: Mr.Paul Cashin

Publisher: International Monetary Fund

Published: 1995-12-01

Total Pages: 76

ISBN-13: 9781557754592

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This paper provides background information on the Lebanese economy, based on an analysis of the economic consequences of war, and discusses several issues that will be central to Lebanon's prospects for recovery