World Economic and Financial Surveys, 1993: International Capital Markets: Part I
- ISBN-10
- 1557752907
- ISBN-13
- 9781557752901
- Category
- Capital market
- Pages
- 88
- Language
- English
- Published
- 1993-01-01
- Publisher
- International Monetary Fund
- Authors
- Morris Goldstein, David Fokke Ihno FOLKERTS-LANDAU
Description
This paper examines the implications of the growth and integration of international capital markets for the management of exchange rates, with particular attention to the inferences that can be drawn from the currency turmoil that shook the European Monetary System (EMS) last fall and winter. The resources available to the private sector for taking positions in the forex market are now much larger than even those of the Group of Ten central banks. When private markets, led by the increasing financial muscle of institutional investors, reach the concerted view (rightly or wrongly) that the risk/return outlook for a particular currency has deteriorated significantly, the defending central bank could be faced with a run that could easily amount to, say, $100–200 billion or more within a week. The range of private market participants involved in last fall’s crisis in European currency markets was broad—encompassing banks, securities houses, institutional investors, hedge funds, and corporations. However that wide participation explains in part why the funds that flooded into central banks were so massive.
Get the book
Similar books
-
EU Financial Regulation and Supervision Beyond 2005
By Jean-Pierre CaseyFramework principles – at least as the Committee of Wise Men saw them – were to establish the core political choices, the essential elements of every legislative proposal. Yet because there is no exact definition of what constitutes ...
-
Nuts and Bolts of Financial Products: The Evolving World of Capital Market and Investment Management Products
By Clifford E. Kirsch, Practising Law Institute, Roger D. Blanc... restricted periods " under Regulation M are based on the " ADTV " and the " public float value " of the issuer . ... in voting rights from the distributed security will be deemed the same security for purposes of Regulation M. See ...
-
Financial Economics
By Robert C. Merton, Zvi Bodie, David L. CleetonKEY BENEFIT: This significant new guide to finance has a broader scope and greater emphasis on general principles than most other books of its kind, which typically focus exclusively on corporate finance.
-
Guide to Clearance and Settlement
By Virginia B. Morris, Stuart Z. GoldsteinThe guide explains clearing, netting, and settling - the essential elements of post-trade processing - and the role of a central counterparty in ensuring completion of equity and fixed-income transactions.
-
The (Mis)Behaviour of Markets: A Fractal View of Risk, Ruin and Reward
By Benoît B. Mandelbrot, Richard L. HudsonIncludes material on the market crisis. This book presents models where the complex gyrations of the FTSE 100 and exchange rates can be reduced to straightforward formulae that yield a much more accurate description of the risks involved.
-
Global Business Today
By Charles W. L. Hill, Thomas McKaig, Timothy D. RichardsonGlobal Business Today
-
Global Business Today
By Charles W. L. Hill, Tim Richardson, Thomas McKaigGlobal Business Today
-
Financial Markets and Institutions
By Jeff MaduraSo if inlemma , ” says Ron Ryan , president of flation was running at 2 % , yields on in terms of long - term interest rates . " Ryan Labs Inc. , a bond market research long - term bonds would be 5 % or lower . firm .
-
Losing Control?: Sovereignty in an Age of Globalization
By Saskia SassenReimers, David M. 1983. “An Unintended Reform: The 1965 Immigration Act and Third World Immigration to the U.S.” journal of American Ethnic History 3 (fall): 9—28. Reisman, W. Michael. 1990. “Sovereignty and Human Rights in Contemporary.
-
Pensions Policy: Evidence on Aspects of Savings Behaviour and Capital Markets
By Anthony NeubergerThe key article in the field is Mankiw and Weil ( 1989 ) . It shows , using 1980 US census data , that housing demand is strongly linked to age , rising steeply when people are in their 20s and 30s , before peaking at around 40 ...