This book is based on a conference held at Kalamazoo College Michigan. In 11–12 May 2001, on the lessons of the European Monetary Union (EMU) for the Americas. Much of the economic analysis of moving to EMU has been undertaken within the context of the Optimal Currency Area (OCA) paradigm, based on Mundell’s (1961) seminal contribution. In that view money is viewed as having developed from a pr...

This paper investigates the extreme dependence and risk spillovers between Bitcoin currencies of BRICS G7 economies. We find time-varying all currencies. Moreover, when analysing from to currencies, we that exercises significant power over most with South African rand Brazilian real holding both highest downside upside before during COVID-19 pandemic period, respectively. When considering towar...

The paper investigates the impact of EMU on foreign direct investment flows. Using the option value approach to investment decisions, it is possible to show how exchange rate uncertainty hinders cross-border investment flows. By permanently fixing bilateral exchange rates, a currency union can then be expected to spur international investment. Results from a gravity model on a sample of OECD co...

We document that a significant fraction of prices in domestic markets of emerging economies are set in dollars. The currency of prices is not homogeneous across goods. More expensive goods are more likely to be set in dollars. We rationalize these facts using a model of price setting in multiple currencies with search frictions. Pricing in dollars prevents erosion of real prices caused by domes...

Interest in digital currencies, especially Bitcoin, has exploded over the past year. The cryptocurrency Bitcoin was created in 2009 by an anonymous entity operating under the pseudonym Satoshi Nakamoto. Using cryptographic primitives to create a digital currency is not particularly new – David Chaum proposed electronic cash nearly thirty years ago. What is different about Bitcoin is its success...

A growing number of central banks are considering the issuance bank digital currencies (CBDCs). CBDCs for general public (“retail CBDCs”) would constitute a liability and form cash. To public, they be an alternative to issued cash private money, such as traditional deposits. The evolution payments plays pivotal role in developing CBDCs. Given declining some jurisdictions, new money may contribu...