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Vox EU:

The battle for trade currency dominance: The dollar vs the renminbi in Argentina

The US dollar has traditionally dominated the invoicing of international trade. But could other currencies one day replace it? This column examines a unique policy experiment in Argentina in 2023. Amid a severe dollar sh...Read more...

Journal article

International Review of Economics and Finance :

Bank default risk propagation along supply chains: evidence from the UK

How does banks' default risk affect the probability of default of non-financial businesses? The literature has focused on the banks' direct corporate customers. It fails to consider the role of supply chain relationships...Read more...

Journal article

Journal of the European Economic Association:

Vehicle currency pricing and exchange rate pass-through

Using detailed firm-level transactions data for UK imports, we find that invoicing in a vehicle currency is pervasive, with more than half of the transactions in our sample invoiced in neither sterling nor the exporter?s...Read more...

CEP discussion paper

Bank default risk propagation along supply chains: evidence from the UK

How does banks? default risk affect the probability of default of non-financial businesses? The literature has addressed this question by focusing on the direct effects on the banks? corporate customers ? demonstrating t...Read more...

CEP discussion paper

Vehicle currency pricing and exchange rate pass-through

Using detailed firm-level transactions data for UK imports, we find that invoicing in a vehicle currency is pervasive, with more than half of transactions in our sample invoiced in neither sterling nor the exporter's cur...Read more...

CEP discussion paper

Currency unions, trade and heterogeneity

How do trade costs affect international trade? This paper offers a new approach. We rely on a flexible gravity equation that predicts variable trade cost elasticities, both across and within country pairs. We apply this ...Read more...

Journal article

Applied Economics Letters:

Industrial structure and preferences for a common currency ? the case of the EURO referendum in Sweden

Attitudes for a common currency differ from nation to nation, or from region to region. We analyse regionally differing voting results of a referendum held in Sweden in lieu of joining the European Monetary Union. We put...Read more...

SERC/Urban and Spatial Programme Discussion Paper

Down and Out in Italian Towns: Measuring the Impact of Economic Downturns on Crime

The paper investigates the effect of local economic conditions on crime. The study focuses on Italy?s local labor markets and analyzes the short-term response of crime to the severe slump of 2007-2009. It shows that the ...Read more...

CEP discussion paper

Optimal Policy for Macro-Financial Stability

In this paper we study whether policy makers should wait to intervene until a financial crisis strikes or rather act in a preemptive manner. We study this question in a relatively simple dynamic stochastic general equili...Read more...

CEP discussion paper

Reserve Accumulation, Growth and Financial Crises

We present a model that reproduces two salient facts characterizing the international monetary system: i) Faster growing countries are associated with lower net capital inflows and ii) Countries that grow faster accumula...Read more...

CEP discussion paper

Capital Controls or Exchange Rate Policy? A Pecuniary Externality Perspective

In the aftermath of the global financial crisis, a new policy paradigm has emerged in which old-fashioned policies such as capital controls and other government distortions have become part of the standard policy toolkit...Read more...

CentrePiece article

Challenges for the dollar as a reserve currency

Gianluca Benigno examines the extent to which the financial crisis has undermined the dollar's pre-eminence....Read more...

CEP discussion paper

Financial Crises and Macro-Prudential Policies

Stochastic general equilibrium models of small open economies with occasionally binding financial frictions are capable of mimicking both the business cycles and the crisis events associated with the sudden stop in acces...Read more...

CEP discussion paper

Currency Unions in Prospect and Retrospect

We critically review the recent literature on currency unions, and discuss the methodological challenges posed by the empirical assessment of their costs and benefits. In the process, we provide evidence on the economic ...Read more...

CEP discussion paper

Crisis? What Crisis? Currency vs. Banking in the Financial Crisis of 1931

This paper examines the role of currency and banking in the German financial crisis of 1931 for both Germany and the U.S. We specify a structural dynamic factor model to identify financial and monetary factors separately...Read more...

CEP discussion paper

Vulnerability of Currency Pegs: Evidence from Brazil

This paper analyses predictions of a simple model of currency crises in which the peg will be abandoned when the currency overvaluation hits a certain threshold, unknown to the agents. Due to learning about the threshold...Read more...

CEP discussion paper

Explaining Currency Crises: A Duration Model Approach

This paper is an empirical investigation into the duration of exchange rate episodes characterized by the absence of speculative attacks. We estimate a duration model for OECD countries during the 1970-1997 period. Speci...Read more...