International Money Flows And Currency Crises

Author : Istvan Gyongyossy
Publisher : Springer Science & Business Media
Page : 159 pages
File Size : 45,5 Mb
Release : 2013-06-29
Category : Business & Economics
ISBN : 9789401719476

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International Money Flows and Currency Crises by Istvan Gyongyossy Pdf

The author had already become involved with the subject of this book when President Nixon suspended the convertibility of the dollar on August 15, 1971. This declaration was equivalent to an official admission of the previously evident failure of the inter national monetary system established in Bretton Woods after long and difficult negotiations. Although the real reasons for this failure are much deeper and more complex, the immediate cause was the tremendous outjlow of money from the United States to Europe and Japan. Never before had economic history recorded a currency movement of such magnitude, although during the periods preceding the devaluation of the French franc and the re valuation of the Deutsche Mark (Le. , by the end of 1968 and mostly in 1969), and particularly at the beginning of 1971, the in ternational flow of money grew to such huge proportions as to alm ost traumatize the economic and financial circles of developed capitalist countries. These economic and financial circles correctly foresaw that the ever growing and hardly controllable volume of currency flow could seriously endanger the already precarious balance of the international financial system and perhaps even upset it. This brief analysis, in contrast to many other predictions of cur rency developments, holds true for a longer period as well.

Author : István Gyöngyössy
Publisher : Unknown
Page : 161 pages
File Size : 46,9 Mb
Release : 1984
Category : Foreign exchange
ISBN : 9630534894

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International Money Flows and Currency Crises by István Gyöngyössy Pdf

Author : Sebastian Edwards,Jeffrey A. Frankel
Publisher : University of Chicago Press
Page : 783 pages
File Size : 42,8 Mb
Release : 2009-02-15
Category : Business & Economics
ISBN : 9780226185057

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Preventing Currency Crises in Emerging Markets by Sebastian Edwards,Jeffrey A. Frankel Pdf

Economists and policymakers are still trying to understand the lessons recent financial crises in Asia and other emerging market countries hold for the future of the global financial system. In this timely and important volume, distinguished academics, officials in multilateral organizations, and public and private sector economists explore the causes of and effective policy responses to international currency crises. Topics covered include exchange rate regimes, contagion (transmission of currency crises across countries), the current account of the balance of payments, the role of private sector investors and of speculators, the reaction of the official sector (including the multilaterals), capital controls, bank supervision and weaknesses, and the roles of cronyism, corruption, and large players (including hedge funds). Ably balancing detailed case studies, cross-country comparisons, and theoretical concerns, this book will make a major contribution to ongoing efforts to understand and prevent international currency crises.

Author : Shang-Jin Wei
Publisher : World Bank Publications
Page : 32 pages
File Size : 47,7 Mb
Release : 2000
Category : Bank loans
ISBN : 8210379456XXX

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Corruption, Composition of Capital Flows and Currency Crises by Shang-Jin Wei Pdf

Corruption affects the composition of capital inflows in a way that may raise the likelihood of a currency crisis.

Author : Mr.Robert P. Flood,Ms.Nancy P. Marion
Publisher : International Monetary Fund
Page : 52 pages
File Size : 45,5 Mb
Release : 1998-09-01
Category : Business & Economics
ISBN : 9781451855166

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Perspectiveson the Recent Currency Crisis Literature by Mr.Robert P. Flood,Ms.Nancy P. Marion Pdf

In the 1990s, currency crises in Europe, Mexico, and Asia have drawn worldwide attention to speculative attacks on government-controlled exchange rates and have prompted researchers to undertake new theoretical and empirical analysis of these events. This paper provides some perspective on this work and relates it to earlier research. It derives the optimal commitment to a fixed exchange rate and proposes a common framework for analyzing currency crises. This framework stresses the important role of speculators and recognizes that the government’s commitment to a fixed exchange rate is constrained by other policy goals. The final section finds that some crises may be particularly difficult to predict using currently popular methods.

Author : Thomas Meyer
Publisher : diplom.de
Page : 87 pages
File Size : 53,5 Mb
Release : 2000-06-15
Category : Business & Economics
ISBN : 9783832424305

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The 90s' Currency Crises by Thomas Meyer Pdf

Inhaltsangabe:Abstract: When on June 2nd 1997 Thailand devalued its currency, the stage was set was the most severe and virulent currency crisis of that decade. The sudden reversal of capital flows depleted economic wealth and social cohesion in many East Asian countries, hitherto perveived to belong to the Asian Miracle. Shockwaves of the crisis were felt in most emerging markets, even those outside the region, and reached mature markets when, for instance, the hedge fund Long-Term Capital Management nearly collapsed. In face of these enormous costs, this paper analyses the possibilities and boundaries of attempts to either reduce the likeliness of respective financial shocks or, when unavoidable, lower the costs of managing these crises. On the ground of the state-of-the-art models of currency crises it is examined which domestic or international factors contributed most to the observed outcome. The guiding question is if either moral hazard considerations, in the form of governmental guarantees and alike, or approaches of multiple equilibria are more suited to serve as an explanation. Moreover, this paper illuminates the significance of the original sin hypothesis which states that emerging markets are constrained when trying to borrow abroad in domestic currency or, even when trying at home, to borrow long-term. Although it is acknowledged that all these factors are valid simultaniously, superior importance in the following parts is given on the multiple equilibria approach. The main part of the paper discusses the most influencial reform proposals of academics and institutions such as the IMF or the Group of 22. Approaches for a new financial architecture are divided into issues of the exchange-rate regime, public and private liquidity, and the institutional framework. These recommandations include questions of dollarization; an international lender of last resort; insurance agencies and credit facilities; capital controls; improved regulation and transparency; as well as the addidition of collective action clauses and alike to international bond contracts. They are assessed according to the criteria developed before, especially with regard to the approaches of moral hazard, multiple equilibria, and original sin. Taking into account that any grand scheme is rather unlikely to be realized on short notice, the conclusions concentrate on moderest reform proposals which can be pursued by emerging countries indiviually or with the assistance [...]

Author : Victor Argy
Publisher : Routledge
Page : 453 pages
File Size : 43,6 Mb
Release : 2013-11-05
Category : Business & Economics
ISBN : 9781136591198

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The Postwar International Money Crisis by Victor Argy Pdf

First Published in 2005. The book has two principal aims. First, to provide a description of the major international monetary developments in the industrial world in the post-war years. Second, to evaluate and analyse these developments by reference to a theoretical framework and, in addition, to look at the key policy issues in the context of the new environment of the last decade.

Author : Mr.Gian Milesi-Ferretti,Assaf Razin
Publisher : International Monetary Fund
Page : 45 pages
File Size : 43,6 Mb
Release : 1998-06-01
Category : Business & Economics
ISBN : 9781451952421

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Current Account Reversals and Currency Crises by Mr.Gian Milesi-Ferretti,Assaf Razin Pdf

This paper studies large reductions in current account deficits and exchange rate depreciations in low- and middle-income countries. It examines which factors help predict the occurrence of a reversal or a currency crisis, and how these events affect macroeconomic performance. Both domestic factors, such as the low reserves, and external factors, such as unfavorable terms of trade, are found to trigger reversals and currency crises. The two types of events are, however, distinct; an exchange rate crash is associated with a fall in output growth and a recovery thereafter, while for reversals there is no systematic evidence of a growth slowdown.

Author : Thomas Meyer
Publisher : GRIN Verlag
Page : 86 pages
File Size : 40,8 Mb
Release : 2012-08-06
Category : Business & Economics
ISBN : 9783656980681

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The 90's Currency Crisis - Lessons for the Financial Landscape by Thomas Meyer Pdf

Diplomarbeit aus dem Jahr 2000 im Fachbereich VWL - Finanzwissenschaft, Note: 1, Freie Universität Berlin, Sprache: Deutsch, Abstract: When on June 2nd 1997 Thailand devalued its currency, the stage was set was the most severe and virulent currency crisis of that decade. The sudden reversal of capital flows depleted economic wealth and social cohesion in many East Asian countries, hitherto perveived to belong to the Asian Miracle. Shockwaves of the crisis were felt in most emerging markets, even those outside the region, and reached mature markets when, for instance, the hedge fund Long-Term Capital Management nearly collapsed. In face of these enormous costs, this paper analyses the possibilities and boundaries of attempts to either reduce the likeliness of respective financial shocks or, when unavoidable, lower the costs of managing these crises. On the ground of the state-of-the-art models of currency crises it is examined which domestic or international factors contributed most to the observed outcome. The guiding question is if either moral hazard considerations, in the form of governmental guarantees and alike, or approaches of multiple equilibria are more suited to serve as an explanation. Moreover, this paper illuminates the significance of the original sin hypothesis which states that emerging markets are constrained when trying to borrow abroad in domestic currency or, even when trying at home, to borrow long-term. Although it is acknowledged that all these factors are valid simultaniously, superior importance in the following parts is given on the multiple equilibria approach.

Author : Jan Joost Teunissen
Publisher : Unknown
Page : 126 pages
File Size : 52,7 Mb
Release : 1996
Category : Capital movements
ISBN : IND:30000057546404

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Can Currency Crises be Prevented Or Better Managed? by Jan Joost Teunissen Pdf

Author : Mr.Ilan Goldfajn,Mr.Rodrigo O. Valdes
Publisher : International Monetary Fund
Page : 33 pages
File Size : 47,9 Mb
Release : 1997-07-01
Category : Business & Economics
ISBN : 9781451850987

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Capital Flows and the Twin Crises by Mr.Ilan Goldfajn,Mr.Rodrigo O. Valdes Pdf

This paper develops a model that focuses on the interaction of liquidity creation by financial intermediaries with capital flows and exchange rate collapses. The intermediaries’ role of transforming maturities is shown to result in larger movements of capital and a higher probability of crisis. These movements resemble the observed cycle in capital flows: large inflows, crisis and abrupt outflows. The model highlights how adverse productivity and international interest rate shocks may trigger a sudden outflow of capital and an exchange collapse. The initial shock is magnified by the behavior of individual foreign investors linked through their deposits in the intermediaries. The expectation of an eventual exchange rate crisis links investors’ behavior even further.

Author : Mr.Alexander K. Swoboda,Mr.Peter B. Kenen
Publisher : International Monetary Fund
Page : 450 pages
File Size : 41,6 Mb
Release : 2000-12-18
Category : Business & Economics
ISBN : 1557758352

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Reforming the International Monetary and Financial System by Mr.Alexander K. Swoboda,Mr.Peter B. Kenen Pdf

This volume examines the implications of greater financial integration on the international monetary and financial system, and how it should be reformed. Various experts consider the most disruptive manifestations of instability and the appropriate policy responses, including exchange rate volatility and misalignments; unstable capital flows to emerging market economies; abrupt capital flow reversals; and private sector involvement in crisis resolution. The IMF’s role in crisis prevention and resolution is also examined.

Author : John T. Harvey
Publisher : Routledge
Page : 197 pages
File Size : 47,5 Mb
Release : 2009-01-13
Category : Business & Economics
ISBN : 9781135969097

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Currencies, Capital Flows and Crises by John T. Harvey Pdf

Breaking from conventional wisdom, this book provides an explanation of exchange rates based on the premise that it is financial capital flows and not international trade that represents the driving force behind currency movements. John T. Harvey combines analyses rooted in the scholarly traditions of John Maynard Keynes and Thorstein Veblen with that of modern psychology to produce a set of new theories to explain international monetary economics, including not only exchange rates but also world financial crises. In the book, the traditional approach is reviewed and critiqued and the alternative is then built by studying the psychology of the market and balance of payments questions. The central model has at its core Keynes’ analysis of the macroeconomy and it assumes neither full employment nor balanced trade over the short or long run. Market participants’ mental model, which they use to forecast future exchange rate movements, is specified and integrated into the explanation. A separate but related discussion of currency crises shows that three distinct tension points emerge in booming economies, any one of which can break and signal the collapse. Each of the models is compared to post-Bretton Woods history and the reader is shown exactly how various shifts and adjustments on the graphs can explain the dollar’s ups and downs and the Mexican (1994) and Asian (1987) crises.

Author : George Fane
Publisher : Edward Elgar Publishing
Page : 238 pages
File Size : 50,7 Mb
Release : 2000-01-01
Category : Business & Economics
ISBN : 1781957967

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Capital Mobility, Exchange Rates, and Economic Crises by George Fane Pdf

If flexible exchange rates are not adopted, central banks should at least avoid the widespread practice of trying to sterilise the monetary effects of capital flows." "The author argues that the implementation of this plan will be a far more effective way of enhancing financial stability than controlling international capital flows, or trying to force private lenders to make new loans to countries that suffer crises."--BOOK JACKET.

Author : GASTON. SAHAY GELOS (RATNA.)
Publisher : International Monetary Fund
Page : 2040 pages
File Size : 43,7 Mb
Release : 2023
Category : Electronic
ISBN : 9798400211263

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SHOCKS AND CAPITAL FLOWS by GASTON. SAHAY GELOS (RATNA.) Pdf