The Federal Reserve has been providing paper currency since its founding in 1913. In fact, the major purpose for creating the Federal Reserve System was to furnish an “elastic currency” that would make financial crises, such as the panic of 1907, less severe. While much has changed in the financial landscape over the last 87 years, currency remains an integral part of the U.S. payments system, ...

Although capital inflows affect positively economies in long-run, it is possible to generate somehow destructive effects if there is no any control on financial markets. This study tries to explore main determinants of large capital inflows episodes to emerging markets. It is also investigated whether the large capital inflows episodes lead to financial crises in forms of sudden stop phenomenon...

When confronted with the current crisis in peripheral Europe, many specialists in emerging-market macroeconomics feel that it is déjà vu all over again. An implication of this feeling is that in order to understand the current situation in southern Europe, one should dust off the theories of exchange-rate crises that were motivated by the economic experience under fixed exchange rates in Latin ...