Results 301 to 310 of about 209,254 (338)

A Closed-Form Solution for Options with Stochastic Volatility with Applications to Bond and Currency Options

, 1993
I use a new technique to derive a closed-form solution for the price of a European call option on an asset with stochastic volatility. The model allows arbitrary correlation between volatility and spot-asset returns. I introduce stochastic interest rates
S. Heston
semanticscholar   +1 more source

Central bank digital currency

The Economics of Cryptocurrencies, 2020
The goal of competing against and replacing central bank fiat money and the banking system, digital currency developed by the private sector, like bitcoin, is intended to have a fixed supply and enable payments.
S. D. Bianco
semanticscholar   +1 more source

Central Bank Digital Currency and Monetary Policy

Journal of Economic Dynamics and Control, 2018
Many central banks are contemplating whether to issue a central bank digital currency (CBDC). A CBDC has certain potential benefits, including the possibility that it can bear interest. However, using a CBDC is costly for agents.
Seyed Mohammadreza Davoodalhosseini
semanticscholar   +1 more source

Strong Currency and Weak Currency

Journal of the Japanese and International Economies, 1998
Abstract This paper presents a two-country model in which two currencies compete with each other. There exists an equilibrium in which the two currencies with different rates of inflation circulate as media of exchange despite neither currency being required to be used for transactions. Taxes payable in local currency and asymmetric injection of fiat
Akihiko Matsui, Akihiko Matsui
openaire   +2 more sources

The Currency Composition of Sovereign Debt

American Economic Journal: Macroeconomics, 2019
We study the currency composition of sovereign debt in emerging economies through the lens of a model in which the government lacks commitment regarding debt and monetary policy.
D. Perez, Pablo Ottonello
semanticscholar   +1 more source

Complementary Currencies

2018
Recent decades have witnessed the proliferation of monetary instruments that differ, in many respects, from the official currency issued by the central bank and by the regulated banking system, such as local currencies, corporate barter, and mutual credit systems.
Amato, Massimo, Fantacci, Luca
openaire   +2 more sources

Local Currency or Foreign Currency Debt?

Revue économique, 2003
Nous nous demandons s’il est avantageux pour un pays emergent que sa dette (publique et privee, domestique et exterieure) soit en devises (en dollars) et non en monnaie nationale. Nous introduisons la possibilite que les autorites choisissent de devaluer si la situation economique se degrade.
openaire   +2 more sources

Global Currency Hedging with Common Risk Factors

Journal of Financial Economics, 2019
We develop a novel method to dynamically hedge foreign exchange exposure in international equity and bond portfolios. The method exploits the time-series predictability of currency returns, which we show emerges from exploiting a forecastable component ...
Wei Opie, Steven J. Riddiough
semanticscholar   +1 more source

Central Bank Digital Currency: optimization of the currency system and its issuance design

China Economic Journal, 2019
Central Bank Digital Currency (CBDC) contributes to optimizing payment functions of fiat money, reducing reliance on payment services provided by the private sector, alleviating regulatory burdens and pressure on the central bank, and strengthening the ...
Yaou Qian
semanticscholar   +1 more source

Currency Flows and Currency Crises

CESifo Economic Studies, 2017
According to the most common understanding, currency crises are always and everywhere a monetary phenomenon. Based on a formal theoretical model and ample empirical evidence, this article argues instead that currency crises are always and everywhere about external imbalances.
openaire   +2 more sources