BIS Working Paper No. 684: “Triffin: Dilemma Or Myth?”
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On the Internationalization of the Japanese Yen
This PDF is a selection from an out-of-print volume from the National Bureau of Economic Research Volume Title: Macroeconomic Linkage: Savings, Exchange Rates, and Capital Flows, NBER-EASE Volume 3 Volume Author/Editor: Takatoshi Ito and Anne Krueger, editors Volume Publisher: University of Chicago Press Volume ISBN: 0-226-38669-4 Volume URL: http://www.nber.org/books/ito_94-1 Conference Date: June 17-19, 1992 Publication Date: January 1994 Chapter Title: On the Internationalization of the Japanese Yen Chapter Author: Hiroo Taguchi Chapter URL: http://www.nber.org/chapters/c8538 Chapter pages in book: (p. 335 - 357) 13 On the Internationalization of the Japanese Yen Hiroo Taguchi The internationalization of the yen is a widely discussed topic, among not only economists but also journalists and even politicians. Although various ideas are discussed under this heading, three are the focus of attention: First, and the most narrow, is the use of yen by nonresidents. Second is the possibility of Asian economies forming an economic bloc with Japan and the yen at the center. Third, is the possibility that the yen could serve as a nominal anchor for Asian countries, resembling the role played by the deutsche mark in the Euro- pean Monetary System (EMS). Sections 13.1-13.3 of this paper try to give a broad overview of the key facts concerning the three topics, above. The remaining sections discuss the international role the yen could play, particularly in Asia. 13.1 The Yen as an Invoicing Currency Following the transition to a floating exchange rate regime, the percentage of Japan’s exports denominated in yen rose sharply in the early 1970s and con- tinued to rise to reach nearly 40 percent in the mid- 1980s, a level since main- tained (table 13.1). -
The International Role of the Euro a Currency Is Only As Strong As Its Foundation
Policy Paper The international role of the euro A currency is only as strong as its foundation Recent shifts in global political and economic powers have pushed the European Commission to identify ways that promote a more diversified and multipolar system of several global currencies, reflecting the Euro area’s economic and financial weight. Why is that and what is the role financial market infrastructures can play in this respect? The European Commission’s initiative to increase trust, attractiveness and usage of the euro at the internati- onal level provides for an important impetus in relation to the eurozone reforms. The initiative also triggers a renewed push to complete the Capital Markets Union (CMU), as an all-encompassing ecosystem is required when it comes to financing questions. It can also be considered a key forward looking initiative where the strengthening of the European markets and infrastructures will reinforce the single currency – and vice versa. The debate takes place at the right time: 2019 is a decisive year for the European Union (EU) with Brexit and the European elections ultimately changing the EU’s political landscape. This provides a triggering factor for the EU to set new and more ambitious priorities for the EU financial markets over the next five years within a multipolar, rapidly changing and highly competitive world order. The international role of the euro is better than perceived Since 1999, the eurozone shares a single currency, the euro. The euro is used as legal tender by the 340 million residents -
Measuring the Natural Rate of Interest: International Trends and Determinants
FEDERAL RESERVE BANK OF SAN FRANCISCO WORKING PAPER SERIES Measuring the Natural Rate of Interest: International Trends and Determinants Kathryn Holston and Thomas Laubach Board of Governors of the Federal Reserve System John C. Williams Federal Reserve Bank of San Francisco December 2016 Working Paper 2016-11 http://www.frbsf.org/economic-research/publications/working-papers/wp2016-11.pdf Suggested citation: Holston, Kathryn, Thomas Laubach, John C. Williams. 2016. “Measuring the Natural Rate of Interest: International Trends and Determinants.” Federal Reserve Bank of San Francisco Working Paper 2016-11. http://www.frbsf.org/economic-research/publications/working- papers/wp2016-11.pdf The views in this paper are solely the responsibility of the authors and should not be interpreted as reflecting the views of the Federal Reserve Bank of San Francisco or the Board of Governors of the Federal Reserve System. Measuring the Natural Rate of Interest: International Trends and Determinants∗ Kathryn Holston Thomas Laubach John C. Williams December 15, 2016 Abstract U.S. estimates of the natural rate of interest { the real short-term interest rate that would prevail absent transitory disturbances { have declined dramatically since the start of the global financial crisis. For example, estimates using the Laubach-Williams (2003) model indicate the natural rate in the United States fell to close to zero during the crisis and has remained there into 2016. Explanations for this decline include shifts in demographics, a slowdown in trend productivity growth, and global factors affecting real interest rates. This paper applies the Laubach-Williams methodology to the United States and three other advanced economies { Canada, the Euro Area, and the United Kingdom. -
The European Payments Union and the Origins of Triffin's Regional Approach Towards International Monetary Integration
A Service of Leibniz-Informationszentrum econstor Wirtschaft Leibniz Information Centre Make Your Publications Visible. zbw for Economics Maes, Ivo; Pasotti, Ilaria Working Paper The European Payments Union and the origins of Triffin's regional approach towards international monetary integration NBB Working Paper, No. 301 Provided in Cooperation with: National Bank of Belgium, Brussels Suggested Citation: Maes, Ivo; Pasotti, Ilaria (2016) : The European Payments Union and the origins of Triffin's regional approach towards international monetary integration, NBB Working Paper, No. 301, National Bank of Belgium, Brussels This Version is available at: http://hdl.handle.net/10419/173757 Standard-Nutzungsbedingungen: Terms of use: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Documents in EconStor may be saved and copied for your Zwecken und zum Privatgebrauch gespeichert und kopiert werden. personal and scholarly purposes. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle You are not to copy documents for public or commercial Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich purposes, to exhibit the documents publicly, to make them machen, vertreiben oder anderweitig nutzen. publicly available on the internet, or to distribute or otherwise use the documents in public. Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, If the documents have been made available under an Open gelten abweichend von diesen Nutzungsbedingungen -
When Did the Dollar Overtake Sterling As the Leading International Currency? Evidence from the Bond Markets
WORKING PAPER SERIES NO 1433 / MAY 2012 WHEN DID THE DOLLAR OVERTAKE STERLING AS THE LEADING INTERNATIONAL CURRENCY? EVIDENCE FROM THE BOND MARKETS by Livia Chitu, Barry Eichengreen and Arnaud Mehl In 2012 all ECB publications feature a motif taken from the €50 banknote. NOTE: This Working Paper should not be reported as representing the views of the European Central Bank (ECB). The views expressed are those of the authors and do not necessarily refl ect those of the ECB. Acknowledgements The authors are grateful to Thierry Bracke, Marc Flandreau, Kristin Forbes, Norbert Gaillard, Christopher Meissner, Angela Redish and Roland Straub for helpful discussions. The views expressed in this paper are those of the authors and do not necessarily refl ect those of the ECB or the Eurosystem. Livia Chițu at European Central Bank, Kaiserstrasse 29, D-60311 Frankfurt am Main, Germany; e-mail: [email protected] Barry Eichengreen at University of California, 603 Evans Hall, Berkeley, 94720 California, USA; e-mail: [email protected] Arnaud Mehl at European Central Bank, Kaiserstrasse 29, D-60311 Frankfurt am Main, Germany; e-mail: [email protected] © European Central Bank, 2012 Address Kaiserstrasse 29, 60311 Frankfurt am Main, Germany Postal address Postfach 16 03 19, 60066 Frankfurt am Main, Germany Telephone +49 69 1344 0 Internet http://www.ecb.europa.eu Fax +49 69 1344 6000 All rights reserved. ISSN 1725-2806 (online) Any reproduction, publication and reprint in the form of a different publication, whether printed or produced electronically, in whole or in part, is permitted only with the explicit written authorisation of the ECB or the authors. -
The International Monetary Crunch: Crisis Or Scandal? JANJOOST TEUNISSEN 359
Alternatives Social Transformation and Humane Governance. Volume XI Number 3 July 1987 Contents On Humane Governance RAJNI KOTHARI 277 One True World or Many? A Gandhian Perspective RAMASHRAy Roy 291 Sexist and Racist Implications ofNew Reproductive Technologies MARIA MIES 323 Political Philosophy and Orientalism: The Classical Origins ofa Discourse SHIRAZ DOSSA 343 The International Monetary Crunch: Crisis or Scandal? JANJOOST TEUNISSEN 359 SPECIAL FEATURE A Statement Issued to Mark Human Rights Week and Pearl Harbor Day 397 Alternatives XII (1987), 359-395 The International Monetary Crunch: Crisis or Scandal? JAN JOOST TEUNISSEN* Today there is probably no ·other area of human concern that affects more deeply the living conditions of people allover the world than that of international finance. Nevertheless, the main policy-making in this field is in the hands of. an amazingly small group comprising central bankers and finance ministers in the rich countries, heads of international organizations such as the International Monetary Fund and big commercial bankers. The opinion of people outsid~ this charmed circle of financial managers is hardly ever taken into account. This is a pity, since economic policy-makers tend by both temperament and training to be rather narrow-minded; their thinking moves In a groove. Robert Triffin, an expert on international finance for ,nearly 50 years, and one of the interlocutors in the following narration, explained it in this way: 'Just as Clemenceau once said that war is much too serious a thing to be left to the gener'als, I think the economy is far too serious a thing to be left to the economists.' The truth of his statement is brought home when we look at the way Western financial authorities are handling the so-called international debt crisis.' In their view, most of the blame for this crisis must be laid on the developing countries. -
Robert Carbaugh and David Hedrick, Will the Dollar Be Dethroned As the Main Reserve Currency?
Global Economy Journal Volume 9, Issue 3 2009 Article 1 Will the Dollar be Dethroned as the Main Reserve Currency? Robert J. Carbaugh∗ David W. Hedricky ∗Central Washington University, [email protected] yCentral Washington University, [email protected] Copyright c 2009 Berkeley Electronic Press. All rights reserved. Will the Dollar be Dethroned as the Main Reserve Currency? Robert J. Carbaugh and David W. Hedrick Abstract The U.S. dollar was in the line of fire as leaders from the largest developed and developing countries participated in the G8 meeting in July, 2009. China and other emerging market heavy- weights such as Russia and Brazil are pushing for debate on an eventual shift away from the dollar to a new global reserve currency. These countries are particularly concerned about the heavy debt burden of the United States and fear inflation will further debase the dollar which has lost 33 percent in value against other major currencies since 2002. Will the dollar continue as the main reserve currency of the world? What are the other currencies to watch as challengers to the throne? This paper addresses these questions. KEYWORDS: international policy, open economy macroeconomics Carbaugh and Hedrick: Dollar as a Reserve Currency Since the 1940s, the U.S. dollar has served as the main reserve currency of the world. Dollars are used throughout the world as a medium of exchange and unit of account, and many nations store wealth in dollar-denominated assets such as Treasury securities. The dollar’s attractiveness has been supported by a strong and sophisticated U.S. economy and its safe-haven status for international investors. -
The Discount Window Refers to Lending by Each of Accounts” on the Liability Side
THE DISCOUNT -WINDOW David L. Mengle The discount window refers to lending by each of Accounts” on the liability side. This set of balance the twelve regional Federal Reserve Banks to deposi- sheet entries takes place in all the examples given in tory institutions. Discount window loans generally the Box. fund only a small part of bank reserves: For ex- The next day, Ralph’s Bank could raise the funds ample, at the end of 1985 discount window loans to repay the loan by, for example, increasing deposits were less than three percent of total reserves. Never- by $1,000,000 or by selling $l,000,000 of securities. theless, the window is perceived as an important tool In either case, the proceeds initially increase reserves. both for reserve adjustment and as part of current Actual repayment occurs when Ralph’s Bank’s re- Federal Reserve monetary control procedures. serve account is debited for $l,000,000, which erases the corresponding entries on Ralph’s liability side and Mechanics of a Discount Window Transaction on the Reserve Bank’s asset side. Discount window lending takes place through the Discount window loans, which are granted to insti- reserve accounts depository institutions are required tutions by their district Federal Reserve Banks, can to maintain at their Federal Reserve Banks. In other be either advances or discounts. Virtually all loans words, banks borrow reserves at the discount win- today are advances, meaning they are simply loans dow. This is illustrated in balance sheet form in secured by approved collateral and paid back with Figure 1. -
The Balance Sheet Policy of the Banque De France and the Gold Standard (1880-1914)
NBER WORKING PAPER SERIES THE PRICE OF STABILITY: THE BALANCE SHEET POLICY OF THE BANQUE DE FRANCE AND THE GOLD STANDARD (1880-1914) Guillaume Bazot Michael D. Bordo Eric Monnet Working Paper 20554 http://www.nber.org/papers/w20554 NATIONAL BUREAU OF ECONOMIC RESEARCH 1050 Massachusetts Avenue Cambridge, MA 02138 October 2014 We are grateful from comments from Vincent Bignon, Rui Esteves, Antoine Parent, Angelo Riva, Philippe de Rougemont, Pierre Sicsic, Paul Sharp, Stefano Ungaro, François Velde, as well as seminar participants at the University of South Danemark, Sciences Po Lyon, Federal Reserve of Atlanta and Banque de France. The views expressed are those of the authors and do not necessarily reflect the views of the Bank of France, the Eurosystem, or the National Bureau of Economic Research. NBER working papers are circulated for discussion and comment purposes. They have not been peer- reviewed or been subject to the review by the NBER Board of Directors that accompanies official NBER publications. © 2014 by Guillaume Bazot, Michael D. Bordo, and Eric Monnet. All rights reserved. Short sections of text, not to exceed two paragraphs, may be quoted without explicit permission provided that full credit, including © notice, is given to the source. The Price of Stability: The balance sheet policy of the Banque de France and the Gold Standard (1880-1914) Guillaume Bazot, Michael D. Bordo, and Eric Monnet NBER Working Paper No. 20554 October 2014 JEL No. E42,E43,E50,E58,N13,N23 ABSTRACT Under the classical gold standard (1880-1914), the Bank of France maintained a stable discount rate while the Bank of England changed its rate very frequently. -
The International Monetary System: Quo Vadis
Columbia University Department of Economics Discussion Paper Series The International Monetary System: Quo Vadis Robert A. Mundell Discussion Paper #:0102-34 Department of Economics Columbia University New York, NY 10027 March 2002 The International Monetary System: Quo Vadis Robert Mundell Columbia University February 8, 2001 Manuel Guitian Memorial Lecture, International Monetary Fund, February 8, 2001 I. Manuel Guitian Manuel Guitian was one of two brilliant students I met in 1965 at the Graduate Institute of International Studies in Geneva. Both went on to the University of Chicago for the Ph.D. program and to great distinction as economists. The other student was Rudiger Dornbusch. My students at Geneva were required to write a research paper on international monetary economics. Manuel and I agreed that he should look into the Poincare-Rist stabilization of the franc in 1926. That got him interested in exchange rate theory and it was an interest that persisted throughout his life. The quality of his analysis of that important episode from the inter-war years convinced me that Manuel had a good future as an economist and I encouraged him to go to Chicago for his Ph.D. University of Chicago Economics in the late 1960s was in one of its golden periods, maybe comparable to Vienna in the 1880s or Harvard, Chicago or Cambridge in the 1930s. There were Frank Knight (emeritus), Earl Hamilton (emeritus), Milton Friedman, Theodore Schultz, Harry Johnson, George Stigler, Hiro Uzawa, Arnold Harberger, Merton Miller, Bert Hoselitz, Robert Fogel, D. Gale Johnson, Gary Becker, Robert Aliber, Arthur Laffer, Stanley Fischer, Herbert Grubel, and myself. -
Taylor Rules
ESTIMATING TAYLOR-TYPE RULES IN CENTRAL AND EASTERN EUROPE By Giorgi Tarkhan-Mouravi Submitted to Central European University Department of Economics In partial fulfillment of the requirements for the degree of Master of Arts Supervisors: Professor Max Gillman and Professor Katrin Rabitsch CEU eTD Collection Budapest, Hungary 2009 Acknowledgments I want to thank my girlfriend Ilona Ferenczi, the thesis could not have been accomplished without her great support and encouragement. The stylistic side of the paper gained a lot from her valuable suggestions. I want to thank my supervisors, Professor Katrin Rabitsch and Professor Max Gillman, for directing me during the process of thesis writing. Especially Max Gillman, whose excellent course “Monetary Economics” motivated me to chose the subject. I want to thank Thomas Rooney for his useful comments regarding the style and the language of paper and to the administrative staff at CEU economics department, who contributed in making the process of writing the thesis enjoyable. Finally, I want to thank my family for their great support during all the time of my study at CEU and my CEU friends, who made the studying period fun. CEU eTD Collection i TABLE OF CONTENTS ABSTRACT.............................................................................................................................III I. INTRODUCTION..................................................................................................................1 II. THE TAYLOR RULE LITERATURE REVIEW ..............................................................3 -
A Practical Solution to the Problems of Currencies John Noel Baillie
A practical solution to the problems of currencies John Noel Baillie This paper is part of the WDX Institute white paper series. The WDX Institute is a not-for-profit research body established to further academic research on World Currency Baskets. A practical solution to the problems of currencies Contents Introduction ......................................................................................................... 3 Currencies............................................................................................................. 4 Historical Summary ......................................................................................................................................... 4 Fiat currencies ................................................................................................................................................... 5 The case for fiat currencies........................................................................................................................... 5 Monetary policy independence ...................................................................................................................... 6 Issues with fiat currencies ..................................................................................... 7 What reserve currency? ................................................................................................................................. 7 2010: Global Macroeconomic imbalances ...............................................................................................