This survey highlights aspects and paces of international payments under global competitive environment being under general and Slovak review. It argues for insights into different theoretical ...assertions of competitiveness and substance of international payments with a macro economic approach to their understanding, taking into consideration various constraints (e.g. export product structure) with regard to new challenges in e.g. entrepreneurship, business trends, global competition, legislation, payment and trade methods.
Using a new international dataset of trade-weighed exchange rates, this paper highlights a neglected adjustment mechanism in the classical gold standard literature. Since gold-pegged countries traded ...extensively with economies operating more flexible monetary regimes and where parity change was a common adjustment device to systemic shocks, we show that such parity adjustments induced worldwide swings in nominal effective exchange rates. These translated into real exchange rate variations to which trade balances responded with an average elasticity of unity and in the direction of restoring external disequilibria. We conclude that some nominal exchange rate flexibility thus present in the pre-1914 system was instrumental to international payments adjustment.
Mitigation of TARGET2 risks - a critical overview Burgold, Peter; Voll, Sebastian
Perspektiven der Wirtschaftspolitik : PWP : eine Zeitschrift des Vereins für Socialpolitik,
05/2012, Volume:
13, Issue:
Supp.1
Journal Article
Peer reviewed
)Since 2011 the trans-European payment system TARGET2 has been heavily criticised. TARGET2 is argued to create automatic financial risks for the economically stronger core countries of the European ...Monetary Union. TARGET2 risks only materialise in case of a country leaving the Monetary Union. We show that a sound analysis of these risks has to explicitely consider the Community's bank note traffic. So far, four substantial suggestions have been made to reform TARGET2. These suggestios aim at limiting the core countries' risks relating to the payment system. We discuss the consequences of these reforms and conclude that they are no meaningful options in the present crisis.
The relationship between international payments and the real exchange rate-the transfer problem-is a classic question in international economics. We use cross-country data on real exchange rates and ...a newly constructed data set on countries' net external positions to shed new light on this question. We present a simple theoretical framework that leads to testable implications for the long-run comovements of real exchange rates, net foreign assets, relative GDP and terms of trade, and cross-country and time series evidence on the subject. We show that on average countries with net external liabilities have more depreciated real exchange rates, and that the main channel of transmission seems to be the relative price of nontraded goods, rather than the relative price of traded goods, across countries. Reprinted by permission of the MIT Press
The use of cryptocurrency for international payments and remittances has been a topic of increasing interest in recent years. Cryptocurrencies, such as Bitcoin and Ethereum, have the potential to ...reduce transaction costs, increase transaction speed and provide financial inclusion for individuals and businesses that are currently unbanked or underbanked. The research aims to explore the current use cases of cryptocurrency for international payments and remittances, as well as the challenges and opportunities that arise from their adoption. The research will also investigate the regulatory landscape and its impact on the adoption of cryptocurrency for international payments and remittances. The research will be conducted through a combination of literature review and case studies of existing cryptocurrency payment and remittance services. The findings of this research will provide insights into the potential of cryptocurrency as a viable alternative to traditional payment and remittance methods and inform the development of policy and regulation in this area.
Bills of Exchange are universally used in commercial and business relations. They can be used as security of financial obligations and at the same time as effective payment instrument. Bills of ...Exchange are very suitable also in such a specific area like export support. This article is focused on possibilities of their use by EXIMBANKA SR in banking and insurance products aimed to the support of export of goods and services from Slovak republic till 2009. Authors refer to real practical experience with use of Bills of Exchange in particular transactions within the export support and also to use them in follow up actions in claiming process of receivables. Illustratively you can find also examples of transactions related to available data and information from business practice focused on application of supporting financial mechanism in the foreign trade of Slovak Republic.
This volume brings together several of the most important research papers on the monetary approach to the balance of payments prepared by IMF staff members. The 11 papers record, the contribution ...made by the IMF's staff to the development of the monetary approach, which is now widely accepted by academic economists and policymakers alike.
The forced overthrow of the historic meter of commercial development, the monetary Gold Standard, as adopted originally in the USA on the first of August 1914’s, triggered, and led during the next ...decade, the great inflations in France, Germany, Russia and almost all other European Countries. The ensuing convulsions of the social order, the rise of the speculator opportunities, the obliteration of the savings of the laboring and middle classes, based on fixed incomes, produced directly and afterwards, the rise of Bolshevism, Fascism, and Nazism. They were follow-ups of the floating European currencies, perennial budgetary and balance of payments deficits, Central banks’ emergency money printing, currency wars and the neo-mercantilism practices.
After Nixon 15 August 1971 second American repudiation of the new Gold Exchange Standard, we entered a slow replay of the first experience, trough inflation, large monetary quantitative expansions and, through bursting bubbles, recessions and stagnations and, finally, new consequent barriers and tariffs perspectives. The most relevant comment, I always share in my speeches is this, coming from a statement on the 100th anniversary of the birth of Jacques Rueff. The comment address has been formulated by Lewis E. Lehrman, at the parliament of France (Assemble Nationale), on November 7, 1996: “Money will decide the fate of mankind, because individual liberty is only possible - or even thinkable - when confined within the boundaries of a collective discipline, calculated to curb the disorders that uncontrolled action is bound to provoke”. (Rueff, 1971).
This paper aims to illustrate how an equilibrium exchange rate of the Yuan would contribute to China's achievement of non-inflationary full employment -- defined as internal balance by James Meade in ...1951, as well as the balance of international payments. In terms of Meade's model, China currently has both excess demand and a payments surplus, so that it would benefit from revaluation, which helps curb internal inflation and the external foreign surplus simultaneously. For China, specifically, revaluation would support combating price increases and facilitate a shift of resources into consumption and raising living standards. The paper also examines three common reasons advanced by groups in favor of avoiding appreciation of the RMB, finding none of them theoretically or empirically convincing. The pursuit of both growth/employment and price stability objectives makes China unable to afford having an undervalued exchange rate. PUBLICATION ABSTRACT
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