Would Gradual De‐Dollarization and More Financing in Local Currencies Boost Trade?

Financing World Trade

The international financial system has grown and evolved immensely over the past two decades. In the late 1950's the Eurocurrency market was only beginning to emerge, for all practical purposes there was no Eurobond market, and extensions of commercial credits were limited to the old commercial banking function of short term trade financing. All of that has changed. Total deposits in the Eurodo...

After the Tide: Commodity Currencies and Global Trade

The decade prior to the Great Recession saw a boom in global trade, including a rapid rise in commodity prices, trade volumes, and, consequently, in the cost of transporting goods around the world. At the same time currencies of commodityexporting currencies appreciated, boosting the carry trade profits in foreign exchange markets. The onset of the Global Recession led to a sharp reversal in al...

In the Matter of Islamic Banking and Local Currencies

Co-existence of multiple trade-off currencies shapes evolutionary outcomes

Evolutionary studies often assume that energy is the primary resource (i.e. "currency") at the heart of the survival-reproduction trade-off, despite recent evidence to the contrary. The evolutionary consequences of having a single trade-off currency versus multiple competing currencies are unknown. Using simulations, we modeled the evolution of either a single physiological currency between rep...

How Much Would a Permanent Tax Cut Boost Japanese Consumption?

Papers in a variety of disparate literatures have recently suggested that habit formation in consumption may explain several empirical puzzles, ranging from the level and cyclical variability of the equity premium (Abel (1990, 1999); Constantinides (1990); Jermann (1998);Campbell and Cochrane (1999)) to the ‘excess smoothness’ of aggregate consumption (Fuhrer (2000)) to the apparent fact that i...