In this paper we examine currency areas and monetary policy coordination in a two-country model where the value of each country’s currency is determined endogenously. Exchanges in the goods markets are modelled as random bilateral matches, and households choose the amount and the frequency of purchases made in each currency area. By contrast, the currency market is centralized and Walrasian. We...

SQL extensions that allow queries to explicitly specify data quality requirements in terms of currency and consistency were proposed in an earlier paper. This paper develops a data quality-aware, finer grained cache model and studies cache design in terms of four fundamental properties: presence, consistency, completeness and currency. The model provides an abstract view of the cache to the que...

For a price process that has an equivalent risk neutral measure, we investigate if the same property holds when the num eraire is changed. We give necessary and su cient conditions under which the price process of a particular asset which should be thought of as a di erent currency can be chosen as new num eraire. The result is related to the characterization of attainable claims that can be he...

This paper analyzes the feasibility of various types of currency unions, such as a dollar bloc, Euro bloc, Yen bloc, and basket currency bloc in East Asia, and empirically estimates welfare effects of a currency union for East Asian economies. Judging from optimum currency area (OCA) criteria, including the symmetry of output and price shocks across countries, commitment to price stability, and...

This paper investigates whether the Federal Reserve might lower its currency processing costs by reallocating high-speed currency sorting volume among its processing sites. Although scale economy estimates from Bauer, Bohn, and Hancock (1998) suggests that consolidation might permit some processing cost savings, it can be very expensive to ship currency due to security and insurance requirement...

In this paper, we study predictability of exchange rates and explore determinants of its dynamics over time. We model the admissible amount of predictability in two ways, each corresponding in a stylized manner to a broad class of rational currency pricing models, namely those under which the marginal currency trader can diversify away currency risk and alternative specifications under which th...

This paper undertakes an exploratory analysis of the inflationary dynamics within the Croatian economy over the period January 1992 December 1999. Recognizing the structural break in the inflationary process corresponding to the anti-inflationary stabilization program of October 1993, the analysis proceeds by estimating an augmented vector autoregressive (VAR) model of the log first-differences...

One of the most significant factors influencing the liquidity of the financial market is the amount of currency in circulation. Although the central bank is responsible for the distribution of the currency it cannot assess the demand for the currency, as that demand is influenced by the non-banking sector. Therefore, the amount of currency in circulation has to be forecasted. This paper introdu...

â â â â â  abstract: â  as the number of independent countries increases and their economies become more integrated, we would expect to observe more multi-country currency ::::union::::s. this paper explores the pros and cons for different countries to adopt as an anchor the us dollar, the euro or the yen. in addition, it addresses the question of how co-movement of outputs and prices would res...

The objective of this paper is to analyze short-term contagion effects in emerging currency markets. The originality of our paper lies in our survey used to present the microstructure of emerging currency markets and our empirical approach to contagion analysis through an estimation of tail dependence between pair currencies employing multivariate extreme value theory for the verification of re...