Found 25 article(s) for author 'Currency'

Harriett Tubman On The $20 Bill

Harriett Tubman On The $20 Bill. Nancy Koehn, June 6, 2019, Audio, “On May 22. Treasury Secretary Steve Mnuchin announced that the $20 bill redesign set to replace President Andrew Jackson with Harriett Tubman would not be pursued during the Trump administration. Harvard Business School historian Nancy Koehn joined Boston Public Radio on Thursday to discuss why the change, initiated by the Obama administration, was delayed.Link

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The Euro’s First 20 Years

The Euro’s First 20 Years. Jeffrey Frankel, January 25, 2019, Opinion, “According to public opinion polls, 20 years after its introduction, the euro is highly popular, with 64% of eurozone citizens supporting the common currency. This offers hope that, if the eurozone’s leaders can learn from past mistakes, the monetary union will survive and even thrive in the future.Link

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The Hidden Costs of Initial Coin Offerings

The Hidden Costs of Initial Coin Offerings. Jeffrey Bussgang, Ramana Nanda, November 7, 2018, Paper, “In recent years, much has been written about how the Blockchain is poised to transform traditional industries such as banking, real estate, and healthcare. More recently, it has gained attention as a way to finance new ventures, through what is known as an Initial Coin Offering (ICO). Less noticed, though, is ICOs appear almost antithetical to the standard approach to financing a risky venture.Link

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A decade from now, bitcoin is more likely to be $100 than $100,000

A decade from now, bitcoin is more likely to be $100 than $100,000. Kenneth Rogoff, March 5, 2018, Video, “The likelihood of bitcoin prices falling to $100 is greater than that of the digital currency trading at $100,000 a decade from now, Harvard University professor and economist Kenneth Rogoff said on Tuesday. “I think bitcoin will be worth a tiny fraction of what it is now if we’re headed out 10 years from now … I would see $100 as being a lot more likely than $100,000 ten years from now,” Rogoff told CNBC’s “Squawk Box.”“” Link

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Why Treasury secretaries should stick with the strong dollar mantra

Why Treasury secretaries should stick with the strong dollar mantra. Lawrence Summers, January 25, 2018, Opinion, “Yesterday in Davos, Secretary Steven Mnuchin left the impression that he might be reversing 25 years of US Treasury strong dollar policy by asserting that, “obviously a weaker dollar is good for us as it relates to trade and opportunities”.  The dollar then had its biggest one-day decline in nearly a year and bond yields rose.Link

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What lurks beneath the Euro

What lurks beneath the Euro. Carmen Reinhart, November 16, 2017, Opinion, “Earlier this year, the consensus among economists was that the United States would outstrip its advanced-economy rivals. The expected spurt in U.S. growth would be driven by the economic stimulus package described in President Donald Trump’s election campaign. But instead, the most notable positive economic news from the developed countries in 2017 has been coming from Europe.Link

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The Real Exchange Rate, Innovation and Productivity

The Real Exchange Rate, Innovation and Productivity. Laura Alfaro, November 2017, Paper, “We evaluate manufacturing firms’ responses to changes in the real exchange rate (RER) using detailed firm-level data for a large set of countries for the period 2001-2010. We uncover the following stylized facts: In emerging Asia, real depreciations are associated with faster growth of firm-level TFP, sales and cash-flow, higher probabilities to engage in R&D and export. We find no significant effects for firms from industrialized economies and negative effects for firms in other emerging economies, which are less export-intensive and more import-intensive.Link

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Banking, Trade, and the Making of a Dominant Currency

Banking, Trade, and the Making of a Dominant Currency. Gita Gopinath, Jeremy Stein, November 11, 2017, Paper, “We explore the interplay between trade invoicing patterns and the pricing of safe assets in different currencies. Our theory highlights the following points: 1) a currency’s role as a unit of account for invoicing decisions is complementary to its role as a safe store of value; 2) this complementarity can lead to the emergence of a single dominant currency in trade invoicing and global banking, even when multiple large candidate countries share similar economic fundamentals; 3) firms in emerging-market countries endogenously take on currency mismatches by borrowing in the dominant currency; 4) the expected return on dominantcurrency safe assets is lower than that on similarly safe assets denominated in other currencies, thereby bestowing an “exorbitant privilege” on the dominant currency. the theory thus provides a unified explanation for why a dominant currency is so heavily used in both trade invoicing and in global finance.Link

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Global Trade and the Dollar

Global Trade and the Dollar. Gita Gopinath, November 2017, Paper, “We document that the U.S. dollar exchange rate drives global trade prices and volumes. Using a newly constructed data set of bilateral price and volume indices for more than 2,500 country pairs, we establish the following facts: 1) the dollar exchange rate quantitatively dominates the bilateral exchange rate in price pass-through and trade elasticity regressions. U.S. monetary policy induced dollar fluctuations have high pass-through into bilateral import prices. 2) Bilateral noncommodities terms of trade are essentially uncorrelated with bilateral exchange rates. 3) Œe strength of the U.S. dollar is a key predictor of rest-of-world aggregate trade volume and consumer/producer price inflation.” Link

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