We offer new evidence that firm-level determinants of foreign currency (FC) and local currency (LC) debt financing differ significantly. While LC debt financing is affected mainly by demand-side borrower incentives, such as operating profitability, financing deficit, and depreciation expenses that ...
Foreign Exchange attributes to the reserve of foreign currency. The rate at which domestic currency is exchanged for any foreign currency is known as the foreign exchange rate. This rate is determined by the demand and supply of foreign currency by the pa...
The Great Depression was caused by a steep decline in the money supply when the stock market crashed in 1929. Explore how the Federal Reserve uses monetary policies to control the money supply and affect interest rates in an effort to prevent another depression from occuring. Related to this Qu...
In contrast, a relative increase in industrial production appreciates the domestic currency. This is reflected in the following equation: (10)FtMON=(mt−mt∗)−(ipt−ipt∗),where mt−mt∗ and ipt−ipt∗ refer to differentials regarding (log) money supply and (log) industrial ...
one may need to consider current and capital account reversal. A large deficit indicating temporary flow of investment with high productivity growth and profitability will have a different implication that the temporary deficit with high public consumption and currency overvaluation. Milesi-Ferretti and Ra...
Zeev, Nadav Ben, and Daniel Nathan 2023.The persistent widening of cross-currency basis: When increased FX swap demand meets limits of arbitrage. Working Paper. Boz, Emine, Filiz D. Unsal, Francisco Roch, Suman S. Basu, and Gita Gopinath. 2020.A conceptual model for the integrated policy ...
Data for: Determinants of sovereign bond yield spreads in the EMU: An optimal currency area perspective Abstract of associated article: In the light of the recent financial crisis, we take a panel cointegration approach that allows for structural breaks to the analysis of the determinants of sove...
The GCC, which consists of six countries, i.e., Bahrain, KSA, Kuwait, Qatar, Oman, and the UAE, was established in 1981 in response to the need for united economic integration and to work towards the establishment of a common market and currency [15]. These countries share many similarit...
In the period between the signing of the Maastricht Treaty and the introduction of the single currency, membership of the Eurozone reduced the average response of the primary bud get balance to the lagged public debt-to-GDP ratio. Compared to the period prior to the Maastricht Treaty, ...
It is beneficial to encourage financial development in tourism to receive the economic advantages of tourism. Tourism is linked to the generation of foreign currency, enhancing a country's financial stability. Therefore, governments should increase investment in tourism, i.e. transportation, restaurants...