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...

This paper discusses the currency management mechanisms used in Deno, a replicated-object storage system designed for use in mobile and weakly-connected environments. Deno primarily differs from previous work in implementing an asynchronous weighted-voting scheme via epidemic information flow, and in committing updates in an entirely decentralized fashion, without requiring any server to have c...

This paper develops a new instrumental-variable (IV) approach to estimate the effects of different exchange rate regimes on bilateral outcomes. The basic idea is that the characteristics of the exchange rate regime between two countries (exchange rate variability, fixed or float, autonomous or common currencies) are partially related to the independent decisions of these countries to peg —expli...

This paper develops a firm-dynamics model with heterogenous firms and endogenous currency debt composition to jointly study financing and investment decisions in developing economies. In our model, foreign currency borrowing arises from a trade-off between aggregate deviations from the risk-free uncovered interest rate parity and firms’ growth potential. Crucially, there is crosssectional heter...

♣ The authors are grateful to Doo Yong Yang, and participants in the 5th APEF International Conference on 5-6 July 2006 at Kangwon National University, Korea for their useful comments and suggestions. RIETI Discussion Papers Series aims at widely disseminating research results in the form of professional papers, thereby stimulating lively discussion. The views expressed in the papers are solely...

An important feature of the international nancial system is that it overwhelmingly uses a major currency, such as the US dollar, as a vehicle in the exchange between other currencies. In this paper we construct an equilibrium model to study this feature. The model economy has a nite number of countries, and each country's goods are sold only for the country's own currency. Households obtain for...