The aim of this annual workshop is to offer a forum for young researchers from the field of International Economics to present and to discuss their current topics of research with other experts. The workshop also provides the opportunity to gain an overview of recent developments, problems and methodological approaches in this field. The aim of this paper is to discuss excess comovements for th...

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...

In this chapter, I will explore two competing approaches to analysis of national currency emission. I will call one the seigniorage view, to be contrasted with what I will call the sovereignty view. Before proceeding, let me say that I am not interested in presenting either a historical analysis, nor will I pursue the etymology of these terms. I will first briefly define the terms as I will be ...

Do large investors increase the vulnerability of a country to speculative attacks in the foreign exchange markets? To address this issue, we build a model of currency crises where a single large investor and a continuum of small investors independently decide whether to attack a currency based on their private information about fundamentals. Even abstracting from signalling, the presence of the...

Recent emerging market crises have emphasized the fluctuating character of trade’s reaction after financial crises, in contradiction with the apparently simple theoretical impact of such events on trade, which is essentially described by the well-known J-curve mechanism.. We use a gravity-like equation to assess the impact of these events on bilateral sectoral trade and reveal the elements whic...

The objective of this document is to provide a sketch of my research topics and a brief description of my current work. The purpose of my thesis is to study the impact of US dollars as an international currency on the world economy, especially on US itself and the emerging market countries. Section 1 discusses the motivation and introduces the topics to be examined. Section 2 presents the paper...

This paper explicitly considers strategic interaction between governments to study currency competition and its effects on the circulation of currencies and welfare in a two-country, twocurrency search theoretic model. Each government uses seigniorage to provide public goods. Agents consume private goods, and the public goods of their own country. We have several Þndings. The negative impact of...

Structural shifts characterize the volatility of the Korean stock and foreign exchange markets during the 1997 Asian financial crisis. This paper employs an unrestricted bivariate GARCH-M model of stock market returns to investigate empirically the effects of daily currency depreciation on Korean stock market returns. The evidence shows that currency depreciation significantly affects stock mar...