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The Feasibility of a Monetary Union in MERCOSUR
The Feasibility of a Monetary Union in MERCOSUR

... Based on the progress of the European Union (EU) and the development of the European Monetary Union (EMU), many economists have studied the possibility of implementing a single monetary unit system in other regions of the world. When considering the countries in the region of Latin America, experts ...
Central Banks and The Money Supply
Central Banks and The Money Supply

DD-AA
DD-AA

UNITED STATES SECURITIES AND EXCHANGE COMMISSION
UNITED STATES SECURITIES AND EXCHANGE COMMISSION

... income of $1.4 billion, or $1.93 diluted EPS, for the third quarter of 2016 compared to U.S. GAAP net income for the third quarter of 2015 of $1.2 billion, or $1.56 diluted EPS. Third quarter 2016 adjusted net income of $1.4 billion, or $1.92 adjusted EPS, was higher than adjusted net income of $1.4 ...
The Collapse of the Bretton Woods Fixed Exchange Rate System
The Collapse of the Bretton Woods Fixed Exchange Rate System

... billion was purchased directly by France, almost exactly the amount by which the French gold stock increased. In the same period, German gold holdings increased by $600 million, exactly balancing the decline in the U.K. gold stock, but there were no other major acquisitions of gold by other countrie ...
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Digital currencies - Bank for International Settlements
Digital currencies - Bank for International Settlements

Explaining the Early Years of the Euro Exchange Rate: an episode
Explaining the Early Years of the Euro Exchange Rate: an episode

Lessons from the Historical Use of Reserve Requirements in the
Lessons from the Historical Use of Reserve Requirements in the

Chapter 10: The Money Supply and Federal Reserve System
Chapter 10: The Money Supply and Federal Reserve System

3AECO – 6 Exchange rates - Economics Teachers` Association of
3AECO – 6 Exchange rates - Economics Teachers` Association of

... goods & services to another country (exporters) make or receive payments, they do so through the global financial system where currencies are bought and sold (forex markets). • Investment flows into and out of a country create a need for currencies to be exchanged. Exchange rates can be flexible, ma ...
E x c h a n g e  ... d e v e l o p e d  ...
E x c h a n g e ... d e v e l o p e d ...

... integration process of developed nations, including New Zealand. In view of the large swings in the New Zealand exchange rate over the past decade, some attention has recently been paid to alternative exchange rate strategies that might allow for reductions in exchange rate variability, and potentia ...
Foreign exchange reserves - how much is enough?
Foreign exchange reserves - how much is enough?

... showed that for developing and newly industrializing countries, even when foreign exchange levels are huge, they can be eroded rapidly if there is loss of confidence. Since then, in Asia and more recently in a number of Latin American countries, central banks have embarked on deliberate policies of ...
The Euro Area`s Exchange Rate Policy and the Experience with
The Euro Area`s Exchange Rate Policy and the Experience with

... Overall, the euro did not record exceptional movements in nominal effective terms. It appreciated by around 5%5 between September 2007 and March 2009. This appreciation stemmed from significant gains vis-à-vis the pound sterling and other Central and Eastern European currencies and was balanced by t ...
HubbardOBrien
HubbardOBrien

... By late 1935, unemployment remained high and inflation low. Nevertheless, the Fed’s Board of Governors worried about a rapid increase in stock prices and some feared an increase in the inflation rate. The Board of Governors decided to reduce excess reserves by raising the required reserve ratio. But ...
CURRENT ACCOUNT REVERSALS AND CURRENCY CRISES
CURRENT ACCOUNT REVERSALS AND CURRENCY CRISES

... fundamentals are steadily deteriorating in the period leading up to a speculative attack or not. However, it is difficult to infer from the data whether the collapse of the peg is a result of deteriorating fundamentals or self-fulfilling prophecies (see, for example, Eichengreen et al. (1995) and Kr ...
Europe and Global Imbalances Philip R. Lane Department of Economics, TCD
Europe and Global Imbalances Philip R. Lane Department of Economics, TCD

... most striking development being the growth in trade with emerging Asia. For the euro area, direct trade with the United States is relatively small and—scaled by GDP—has not increased much over the past 20 years. Indeed, emerging Asia is now as important a trading partner as the United States for the ...
Dollarization in Latin America Barry Comerford, Emmet Ryan and Marton Gyongyosi
Dollarization in Latin America Barry Comerford, Emmet Ryan and Marton Gyongyosi

... Learning the Monetary Lessons of Latin American History The countries of Latin America have a great deal of experience with different exchange rate regimes. The idea of super-fixed exchange rates, i.e. full dollarization, has recently been introduced by the Argentinean government. Argentina has alre ...
The Federal Reserve Engages the World
The Federal Reserve Engages the World

Money, Banking, and the Financial System
Money, Banking, and the Financial System

... By late 1935, unemployment remained high and inflation low. Nevertheless, the Fed’s Board of Governors worried about a rapid increase in stock prices and some feared an increase in the inflation rate. The Board of Governors decided to reduce excess reserves by raising the required reserve ratio. But ...
From Great Depression to Great Recession
From Great Depression to Great Recession

This PDF is a selection from a published volume from... Economic Research
This PDF is a selection from a published volume from... Economic Research

... In the first part of this paper, we investigate what impacts an increased aversion to liquidity risk can have on current account and the other macroeconomic variables in a simple open economy model. In the model, each representative agent maximizes the utility function over time. Since Obstfeld and ...
Corporate Hedging for Foreign Exchange Risk in India
Corporate Hedging for Foreign Exchange Risk in India

A Program for Monetary Reform - The University of Chicago Booth
A Program for Monetary Reform - The University of Chicago Booth

Much Appreciated: The Rise of the Canadian Dollar, 2002-2008
Much Appreciated: The Rise of the Canadian Dollar, 2002-2008

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Reserve currency



A reserve currency (or anchor currency) is a currency that is held in significant quantities by governments and institutions as part of their foreign exchange reserves. The reserve currency is commonly used in international transactions and often considered a hard currency or safe-haven currency. People who live in a country that issues a reserve currency can purchase imports and borrow across borders more cheaply than people in other nations because they don't need to exchange their currency to do so.By the end of the 20th century, the United States dollar was considered the world's most dominant reserve currency, and the world's need for dollars has allowed the United States government as well as Americans to borrow at lower costs, granting them an advantage in excess of $100 billion per year. However, the U.S. dollar's status as a reserve currency, by increasing in value, hurts U.S. exporters.
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