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International Currency (international + currency)

Distribution by Scientific Domains
Business, Economics, Finance and Accounting100%

Selected Abstracts

The Empirics of International Currencies: Network Externalities, History and Persistence,

THE ECONOMIC JOURNAL, Issue 537 2009
Marc Flandreau
Using a new database for the late nineteenth century, when the pound sterling was the world's leading international currency, this article provides evidence on the empirical determinants of international currency status. We report evidence in favour of the search-theoretic models to international currencies. Using a microeconomic model of currency choice, we provide empirical support to strategic externalities. We find strong confirmation of the existence of persistence, but reject the view that the international monetary system was subject to pure path dependency and lock-in effects, suggesting that, even in the absence of WWI, the USD was bound to overtake sterling. [source]

Financial Globalization: Unequal Blessings

INTERNATIONAL FINANCE, Issue 3 2002
Augusto De La Torre
This paper presents a framework to analyse financial globalization. It argues that financial globalization needs to take into account the relation between money (particularly in its role as store of value), asset and factor price flexibility, and contractual and regulatory institutions. Countries that have the ,blessed trinity' (international currency, flexible exchange rate regime, and sound contractual and regulatory environment) can integrate successfully into the (imperfect) world financial markets. Developing countries, though, normally display the ,unblessed trinity' (weak currency, fear of floating, and weak institutional framework). The paper defines and discusses two alternative avenues (a ,dollar trinity' and a ,peso trinity') for developing countries to safely embrace international financial integration while the blessed trinity remains beyond reach. [source]

The Empirics of International Currencies: Network Externalities, History and Persistence,

THE ECONOMIC JOURNAL, Issue 537 2009
Marc Flandreau
Using a new database for the late nineteenth century, when the pound sterling was the world's leading international currency, this article provides evidence on the empirical determinants of international currency status. We report evidence in favour of the search-theoretic models to international currencies. Using a microeconomic model of currency choice, we provide empirical support to strategic externalities. We find strong confirmation of the existence of persistence, but reject the view that the international monetary system was subject to pure path dependency and lock-in effects, suggesting that, even in the absence of WWI, the USD was bound to overtake sterling. [source]