Local Currency (local + currency)

Distribution by Scientific Domains


Selected Abstracts


Money and Modernity: State and Local Currencies in Melanesia

AMERICAN ANTHROPOLOGIST, Issue 3 2000
Webb Keane
Money and Modernity: State and Local Currencies in Melanesia. David Akin and Joel Robbins. eds. ASAO Monograph Series, 17. Pittsburgh: University of Pittsburgh Press, 1999. 284 pp. [source]


Money and Modernity: State and Local Currencies in Melanesia; Border Fetishisms: Material Objects in Unstable Spaces

AMERICAN ETHNOLOGIST, Issue 3 2001
David Graeber
Money and Modernity: State and Local Currencies in Melanesia. David Akin and Joel Robbins. Pittsburgh: University of Pittsburgh Press, 1999. viii. 284 pp., notes, bibliography, index. Border Fetishisms: Material Objects in Unstable Spaces. Patricia Spyer. London: Routledge Press, 1998. vii. 262 pp., illustrations, photographs, index. [source]


Financial dollarization: evaluating the consequences

ECONOMIC POLICY, Issue 45 2006
Eduardo Levy Yeyati
SUMMARY Financial dollarization The presence in residents' portfolio of foreign-currency assets and liabilities (or ,financial dollarization') has been alleged to influence monetary policy in developing economies and, especially, to cause debtors' insolvency in the aftermath exchange rate depreciations (the ,balance sheet effect'). The abundant and influential literature on these implications, however, contrasts sharply with the scarcity of empirical work aimed at confirming or refuting them. Using a new database, this paper assesses the evidence on the determinants of financial dollarization and tests whether its empirical effects on monetary and financial stability and on economic performance are consistent with theoretical predictions. It finds that financially dollarized economies display a more unstable demand for money, a greater propensity to suffer banking crises after a depreciation of the local currency, and slower and more volatile output growth, without significant gains in terms of domestic financial depth. The results indicate that active de-dollarization policies may be advisable for the many economies, including Central and Eastern European ones, where foreign-currency denominated assets and liabilities are important in residents' financial portfolios. , Eduardo Levy Yeyati [source]


The Signalling Role of Municipal Currencies in Local Development

ECONOMICA, Issue 288 2005
Rajshri Jayaraman
The last decade has seen the burgeoning of several hundred local community currency institutions in cities across the world. Although residents of these communities claim that local currency promotes local development, how it does so has hitherto been unexplored. We argue that the introduction of a municipal currency may serve as a signal of demand for local goods. Where demand uncertainty deters firms from investing in more productive technologies, such a signal improves the chances that technology choice will be optimal. The introduction of a local currency therefore always improves ex ante efficiency and may lead to ex post efficiency, with strictly higher levels of productivity and welfare. [source]


Monetary policy rules in practice: evidence from Turkey

INTERNATIONAL JOURNAL OF FINANCE & ECONOMICS, Issue 1 2004
Hakan Berument
Abstract This paper estimates a forward-looking monetary policy reaction function of the Central Bank of the Republic of Turkey by considering the period from 1990:01 to 2000:10. When the spread between the interbank rate and depreciation rate of the local currency is taken as a policy tool, the empirical evidence suggests that the Turkish Central Bank responds to its foreign exchange reserves, output and M2 growth not the forward, current or lagged inflation. Copyright 2003 John Wiley & Sons, Ltd. [source]


The Completely Decentralized City: The Case for Benefits Based Public Finance

AMERICAN JOURNAL OF ECONOMICS AND SOCIOLOGY, Issue 1 2001
Fed E. Foldvary
An alternative to centralized top-down city governance is a multi-level bottom-up structure based on small neighborhood contractual communities. This paper analyzes the voting rules and public finances of decentralized, contractual urban governance and the likely outcome of such a constitutional structure, substantially reduced transfer seeking or rent seeking. Tax and service substitution, with lower-level funding and services substituting for higher-level public finance, is the general process by which the governance would devolve. Land rent is the most feasible source of such decentralized public finance, and local communities could also engage in local currency and credit services. Some empirical examples demonstrate the implementation of some of these governance structures. [source]


Capital Structure and Financial Risk: Evidence from Foreign Debt Use in East Asia

THE JOURNAL OF FINANCE, Issue 6 2003
George Allayannis
Using a data set of East Asian nonfinancial companies, we examine a firm's choice between local, foreign, and synthetic local currency (hedged foreign currency) debt. We find evidence of unique as well as common factors that determine each debt type's use, indicating the importance of examining debt at a disaggregated level. We exploit the Asian financial crisis as a natural experiment to investigate the role of debt type in firm performance. Surprisingly, we find that the use of synthetic local currency debt is associated with the biggest drop in market value, possibly due to currency derivative market illiquidity during the crisis. [source]