In this paper, I attempt to address some of these issues. I examine the behaviour of countries that are or have been members of international currency unions. More precisely, I ask whether existing currency unions replicate the desirable features of optimal currency areas as set out by Mundell (1961). Specifically, I ask whether the countries and political units that constitute currency unions ...

The main purpose of this study is to devise a general regression neural network (GRNN)based currency crisis forecasting model for Southeast Asian economies based upon the disastrous 1997–1998 currency crisis experience. For this some typical indicators of currency exchange rates volatility are first chosen, then these indicators are input into GRNN for training, and finally the trained GRNN is ...

An efficient currency recognition system is vital for the automation in many sectors such as vending machine, rail way ticket counter, banking system, shopping mall, currency exchange service etc. The paper currency recognition is significant for a number of reasons. a) They become old early than coins; b) The possibility of joining broken currency is greater than that of coin currency; c) Coin...

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...

Abstract: Central banks have long been interested in obtaining precise estimations of money demand given the fact that the evolution of money demand plays a key role over several monetary variables. One implication of currency substitution is that the exchange rate could serve as another determinant of the demand for money. Due to the recent currency crisis in Iran, it would be important to inv...

The paper uses a dual-currency search theoretic approach to demonstrate that it is possible to induce the acceptance of a local currency in a dollarized economy. In the model, we assume that a foreign currency is in full circulation and the government policy tool is the convertibility of the local currency to the foreign currency. We show that the economy can achieve equilibria where two monies...

♣ 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...

Designed to compete with fiat currencies, bitcoin proposes it is a crypto-currency alternative. Bitcoin makes a number of false claims, including: bitcoin can be a reserve currency for banking; hoarding equals saving; and that we should believe bitcoin can expand by deflation to become a global transactional currency supply. Bitcoin’s developers combine technical implementation proficiency with...

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...