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The Optimal Currency Basket with Input Currency and Output Currency [PDF]

open access: possibleSSRN Electronic Journal, 2008
This paper explores the determination of the optimal currency basket in a small open economy general equilibrium model with sticky prices. In contrast to traditional literature, we focus on an economy with vertical trade, where one currency is used as the invoicing currency of imported intermediate goods and is called the \input currency", while the ...
Kang Shi, Juanyi Xu
openaire   +1 more source

Currency futures and currency crises [PDF]

open access: possible, 2004
Since financial derivatives are key instruments for risk taking as well as risk reduction, it is only straightforward to examine their role in currency crises. This paper addresses this issue by investigating the impact of currency futures trading on the underlying exchange rates.
openaire   +2 more sources

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