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Full-Text Articles in Macroeconomics
Why The World Needs A Reserve Asset With A Hard Anchor, Warren Coats, Dongsheng Di, Yuxuan Zhao
Why The World Needs A Reserve Asset With A Hard Anchor, Warren Coats, Dongsheng Di, Yuxuan Zhao
Warren Coats
From the 1970s, the global currency system has two features: the use of one or a few sovereign currencies as the global reserve asset and the floating exchange rate regime between major currencies.This paper points out that the costs of the dollar’s use as an international reserve currency exceed the benefits for both the US and the rest of the world. These costs include the exporting of American manufacturing as a byproduct of its current account deficit needed to supply its currency to the rest of the world. In addition to the detriment to trade from unpredictable exchange rate fluctuations, …
Why Over-Financialization In The Eurozone Periphery Was Inevitable: A Crisis Of Flawed Legislation And Competitive Imbalances, Maximilian Bevan
Why Over-Financialization In The Eurozone Periphery Was Inevitable: A Crisis Of Flawed Legislation And Competitive Imbalances, Maximilian Bevan
Maximilian Bevan
Over the past three years, the heads of state in the Euro area have argued over the proper monetary mechanisms to alleviate the protracted European debt crisis. This paper illuminates the often-overlooked aspects of this crisis – the fundamental failures of the monetary union from its inception. It expands the scope of analysis on the Eurozone crisis by addressing the over-financialization in the Eurozone periphery (Greece, Portugal, and Spain) within a political-economy framework. It explicates the direct relationship between the political manipulations of the legislation by Germany (analyzed from a public choice perspective) and the resulting economic consequences that the …