Skip to main content

International Liquidity and International Financial Markets

  • Chapter
International Economics
  • 337 Accesses

Abstract

Although — as mentioned in the Preface — a detailed description of the international monetary system in the period after the Second World War is outside the scope of the present work, a very brief treatment of the key events is necessary to provide the minimum amount of information necessary to set the theoretical problems against their institutional and historical background (for detailed treatment we refer the reader, e.g., to Triffin, 1968; Meier, 1982; Solomon, 1982; Scammell, 1983; Tew, 1982; Grubel, 1984; Federal Reserve Bank of Boston, 1984).

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

eBook
USD 16.99
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 54.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Special cover Book
USD 219.99
Price excludes VAT (USA)
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  • Alessandrini, S., 1975, Financing Policies and the Demand for International Reserves, Ricerche Economiche, No. 3–4, 370–395

    Google Scholar 

  • Argy, V., 1981, The Postwar Interntional Money Crisis: An Analysis, London, Allen & Unwin

    Google Scholar 

  • Batten, S.D., 1982, Central Banks Demand for Foreign Reserves under Fixed and Floating Exchange Rates, Federal Reserve Bank of St. Louis Review 64, 20–30

    Google Scholar 

  • Bell, G., 1973, The Euro-Dollar Market and the International Financial System, London, Macmillan

    Google Scholar 

  • Ben-Bassat, A., 1980, The Optimal Composition of Foreign Exchange Reserves, Journal of International Economics 10, 285–295

    Article  Google Scholar 

  • Ben-Bassat, A., 1984, Reserve-Currency Diversification and the Substitution Account, Princeton Studies in International Finance No. 53, International Finance Section, Princeton University

    Google Scholar 

  • Chrystal, K.A., 1977, Demand for International Media of Exchange, American Economic Review 67, 840–850

    Google Scholar 

  • Claassen, E.M., 1976, The Optimizing Approach to the Demand for International Reserves: A Survey, in: E. Claassen and P. Salin (eds.), 1976, 73–115

    Google Scholar 

  • Clark, P.B., 1970, Optimum International Reserves and the Speed of Adjustment, Journal of Political Economy 78, 356–376

    Article  Google Scholar 

  • Cohen, B.J., 1975, International Reserves and Liquidity, in: P.B. Kenen (ed.), International Trade and Finance, Cambridge University Press, 411–451

    Google Scholar 

  • Cox, D.R. and H.D. Miller, 1980, The Theory of Stochastic Processes, London, Chapman and Hall

    Google Scholar 

  • Crockett, A.D., 1976, The Euro-Currency Market: An Attempt to Clarify Some Basic Issues, IMF Staff Papers 23, 375–386

    Article  Google Scholar 

  • De Macedo, J.B., 1982, Portfolio Diversification across Currencies, in: R.N. Cooper et al. (eds.), 69–100

    Google Scholar 

  • Dufey, G. and LH. Giddy, 1978, The International Money Market, Englewood Cliffs (N.J.), Prentice-Hall

    Google Scholar 

  • Falchi, G. and R.S. Masera, 1982, The Role of Gold in Central Banks’ Reserve Composition, in: A. Quadrio Curzio (ed.), 245–262

    Google Scholar 

  • Federal Reserve Bank of Boston, 1984, The International Monetary System: Forty Years after Bretton Woods (Proceedings of a Conference Held at Bretton Woods, New Hampshire, May 1984), Conference Series No. 28, Boston

    Google Scholar 

  • Flanders, M.J., 1971, The Demand for International Reserves, Studies in International Finance No. 27, International Finance Section, Princeton University

    Google Scholar 

  • Freedman, C., 1977, A Model of the Euro-Dollar Market, Journal of Monetary Economics 3, 139–161

    Article  Google Scholar 

  • Frenkel, J.A., 1983, International Liquidity and Monetary Control, in: G.M. von Furstenberg (ed.), 65–109

    Google Scholar 

  • Frenkel, J.A. and B. Jovanovic, 1981, Optimal International Reserves: A Stochastic Framework, Economic Journal 91, 507–514

    Article  Google Scholar 

  • Gandolfo, G., 1980, Economic Dynamics: Methods and Models, Amsterdam, North-Holland

    Google Scholar 

  • Giustiniani, A., 1985, Domanda di riserve internazionali ed interventi sul mercato dei cambi: alcune considerazioni, Quaderni Sardi di Economia 15, 3–22

    Google Scholar 

  • Grubel, H.G., 1969, The Distribution of Seignorage from International Liquidity Creation, in: R.A. Mundell and A.K. Swoboda (eds.), Monetary Problems of The International Economy, Chicago University Press, 269–282

    Google Scholar 

  • Grubel, H.G., 1971, The Demand for International Reserves: A Critical Review of the Literature, Journal of Economic Literature 9, 1148–1166

    Google Scholar 

  • Grubel, H.G., 1984, The International Monetary System, 4th ed., Harmondsworth, Penguin

    Google Scholar 

  • Guttentag, J. and R. Herring, 1983, The Lender-of-Last Resort Function in an International Context, Essays in International Finance No. 151, International Finance Section, Princeton University

    Google Scholar 

  • Hageman, H.A., 1969, Reserve Policies of Central Banks and Their Implications for U.S. Balance of Payments Policy, American Economic Review 59, 62–77

    Google Scholar 

  • Hamada, K. and K. Ueda, 1977, Random Walks and the Theory of Optimal International Reserves, Economic Journal 87, 722–742

    Article  Google Scholar 

  • Heller, H.R., 1966, Optimal International Reserves, Economic Journal 76, 296–311

    Article  Google Scholar 

  • Heller, H.R. and M.S. Kahn, 1978, The Demand for International Reserves under Fixed and Floating Exchange Rates, IMF Staff Papers 26, 699–724

    Google Scholar 

  • Heller, H.R. and M. Knight, 1978, Reserve-Currency Preferences of Central Banks, Essays in International Finance No. 131, International Finance Section, Princeton University

    Google Scholar 

  • Henderson, D.W. and D.G. Waldo, 1983, Reserve Requirements on Eurocurrency Deposits: Implications for the Stabilization of Real Output, in: J.S. Bhandari and B.H. Putnam (eds.), 350–383

    Google Scholar 

  • Herring, R.J. and R.C. Marston, 1977, National Monetary Policies and International Financial Markets, Amsterdam, North-Holland

    Google Scholar 

  • Hewson, J. and E. Sakakibara, 1974, The Euro-Dollar Deposit Multiplier: A Portfolio Approach, IMF Staff Papers 21, 307–328

    Article  Google Scholar 

  • Hewson, J. and E. Sakakibara, 1976, A General Equilibrium Approach to the Eurodollar Market, Journal of Money, Credit and Banking 8, 297–323

    Article  Google Scholar 

  • Hippie, F.S., 1974, The Disturbances Approach in the Literature of the Demand for International Reserves, Studies in International Finance No. 35, International Finance Section, Princeton University

    Google Scholar 

  • Hogan, W.P. and I.F. Pearce, 1982, The Incredible Eurodollar, London, Allen & Unwin

    Google Scholar 

  • Holden, P. and M. Holden, 1979, Exchange Rate Policy and the Demand for International Reserves, Rivista Internazionale di Scienze Economiche e Commerciali 26, 232–246

    Google Scholar 

  • Hughes Hallet, A. and H. Rees, 1983, Quantitative Economic Policies and Interactive Planning, Cambridge University Press

    Google Scholar 

  • Intriligator, M.D., 1971, Chaps. 11 and 14 Mathematical Optimization and Economic Theory, Englewood Cliffs (N. J.), Prentice-Hall

    Google Scholar 

  • Johnston, R.B., 1981, Theories of the Growth of the Euro-Currency Market: A Review of the Euro-Currency Deposit Multiplier, BIS Economic Papers, No. 4, Bank for International Settlements, Basle

    Google Scholar 

  • Johnston, R.B., 1983, The Economics of the Euro-Market: History, Theory and Policy, London, Macmillan

    Google Scholar 

  • Kelly, M.G., 1970, The Demand for International Reserves. American Economic Review 60, 655–667

    Google Scholar 

  • Kenen, P., 1963, Reserve Asset Preferences of Central Banks and Stability of the Gold Exchange Standard, Studies in International Finance No. 10, International Finance Section, Princeton University

    Google Scholar 

  • Klopstock, F.H., 1968, The Euro-Dollar Market: Some Unresolved Issues, Essays In International Finance No. 65, International Finance Section, Princeton University

    Google Scholar 

  • Knight, M.D., 1977, Euro-Dollars, Capital Mobility and the Forward Exchange Market, Economica 44, 1–21

    Article  Google Scholar 

  • Kreinin, M. E. and H.R. Heller, 1973, Adjustment Costs, Optimal Currency Areas and International Reserves, in: W. Sellekaerts (ed.), International Trade and Finance: Essays in Honour of Jan Tinbergen, London, Macmillan, 127–140

    Google Scholar 

  • Krugman, P., 1984 The International Role of the Dollar, Theory and Prospect, in: J.F.O. Bilson and R.C. Marston (eds.), 261–278

    Google Scholar 

  • Lee, B., 1973, The Euro-Dollar Multiplier, Journal of Finance 28, 867–874

    Article  Google Scholar 

  • Machlup, F., 1964b, The Fuzzy Concepts of Liquidity, International and Domestic, in: F. Machlup, 1964a, 245–259

    Google Scholar 

  • Machlup, F., 1966, The Need for Monetary Reserves, Banca Nazionale del Lavoro Quarterly Review 19, 175–222

    Google Scholar 

  • Machlup, F., 1970a, Euro-Dollar Creation: A Mystery Story, Banca Nazionale del Lavoro Quarterly Review 23, 119–137

    Google Scholar 

  • Machlup, F., 1972, Euro-Dollars, Once Again, Banca Nazionale del Lavoro Quarterly Review 25, 119–137

    Google Scholar 

  • Masera, R., 1981, The Euro-Currency Markets: Their Development, the Problem of Their Control and Their Role in the International Monetary System, in: Various Authors, Mercati monetari internazionali e inflazione (atti della tavola rotonda su “Inflazione e sistema monetario internazionale”, Rome, 20–21 October 1980), Università degli Studi di Roma, Facoltà di Scienze Politiche

    Google Scholar 

  • Mayer, H., 1979, Credit and Liquidity Creation in the International Banking Sector, BIS Economic Papers, No. 1, Bank for International Settlements, Basle

    Google Scholar 

  • Mayer, H., 1985, Interaction between the Euro-Currency Markets and the Exchange Markets, BIS Economic Papers, No. 15, Bank for International Settlements, Basle

    Google Scholar 

  • McKinnon, R.I., 1977, The Euro-Currency Market, Essays in International Finance No. 125, International Finance Section, Princeton University

    Google Scholar 

  • McKinnon, R.I., 1979, Money in International Exchange, Oxford University Press

    Google Scholar 

  • Meier, G.M., 1982, Problems of a World Monetary Order, Oxford University Press

    Google Scholar 

  • Niehans, J., 1984, International Monetary Economics, Oxford, Philip Allan

    Google Scholar 

  • Niehans, J. and J. Hewson, 1976, The Euro-Dollar Market and Monetary Theory, Journal of Money, Credit and Banking 8, 1–27

    Article  Google Scholar 

  • Nyberg, L. and S. Viotti, 1976, Optimal Reserves and Adjustment Policies, in: E.M. Claassen and P. Salin (eds.), 1976, 124–145

    Google Scholar 

  • Purvis, D.D., 1983, Comment (on Frenkel, 1983), in: G.M. von Furstenberg (ed.), 115–116

    Google Scholar 

  • Quadrio Curzio, A. (ed.), 1982, The Gold Problem: Economic Perspectives (Proceedings of the World Conference on Gold held in Rome, 1982), Oxford University Press for the Banca Nazionale del Lavoro and Nomisma

    Google Scholar 

  • Scammell, W.M., 1983, The International Economy Since 1945, 2nd ed., London, Macmillan

    Google Scholar 

  • Sellekaerts, W. and B. Sellekaerts, 1973, Balance of Payments Deficits, the Adjustment Cost and the Optimum Level of International Reserves, Weltwirtschaftliches Archiv 109, 1–18

    Article  Google Scholar 

  • Solomon, R., 1982, The International Monetary System, 1945–1981, New York, Harper & Row

    Google Scholar 

  • Swoboda, A.K., 1968, The Euro-Dollar Market: An Interpretation, Essay in International Finance No. 64, International Finance Section, Princeton University

    Google Scholar 

  • Swoboda, A.K., 1978, Gold, Dollars, Euro-Dollars, and the World Money Stock under Fixed Exchange Rates, American Economic Review 68, 625–642

    Google Scholar 

  • Swoboda, A.K., 1980, Credit Creation in the Euro-Market: Alternative Theories and the Implications For Control, Occasional Paper No. 2, Group of Thirty, New York

    Google Scholar 

  • Tew, B., 1982, The Evolution of the International Monetary System 1945–81, London, Hutchinson

    Google Scholar 

  • Tobin, J., 1963, Commercial Banks as Creators of “Money”, in: D. Carson (ed.), Banking and Monetary Studies, Homewood (Ill.), Irwin, 408–419. Reprinted in: J. Tobin and D. Hester (eds.), 1967, Financial Markets and Economic Activity, Cowles Fundation Monograph No. 21, New York, Wiley, Chap. 1, and in: J. Tobin, 1971, Essays in Economics, Vol. 1: Macroeconomics, Amsterdam, North-Holland, Chap. 16

    Google Scholar 

  • Triffin, R., 1960, Gold and the Dollar Crisis, Yale University Press

    Google Scholar 

  • Triffin, R., 1968, Our International Monetary System: Yesterday, Today and Tomorrow, New York, Random House

    Google Scholar 

  • Various Authors, 1973, A Debate on the Eurodollar Market, Quaderni di Ricerche n. 11, Ente per gli studi monetari, bancari e finanziari Luigi Einaudi, Roma

    Google Scholar 

  • von Furstenberg, G.M., 1982, New Estimates of the Demand for Non-Gold Reserves under Floating Exchange Rates, Journal of International Money and Finance 1, 81–95

    Article  Google Scholar 

  • Wijkman, P.M., 1981, Seignorage, Financial Intermediation, and the International Role of the Dollar, 1960–1971, Seminar Paper No. 173, Institute for International Economic Studies, University of Stockholm

    Google Scholar 

  • Williamson, J.H., 1971, On the Normative Theory of Balance-of-Payments Adjustment, in: G. Clayton, J.C. Gilbert, R. Sedgwick (eds.), Monetary Theory and Monetary Policy in the 1970s, Oxford University Press, 235–256

    Google Scholar 

  • Williamson, J., 1973a, Surveys in Applied Economics: International Liquidity, Economic Journal 83, 685–746

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Rights and permissions

Reprints and permissions

Copyright information

© 1986 Springer-Verlag Berlin Heidelberg

About this chapter

Cite this chapter

Gandolfo, G. (1986). International Liquidity and International Financial Markets. In: International Economics. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-662-07976-8_19

Download citation

  • DOI: https://doi.org/10.1007/978-3-662-07976-8_19

  • Publisher Name: Springer, Berlin, Heidelberg

  • Print ISBN: 978-3-662-07978-2

  • Online ISBN: 978-3-662-07976-8

  • eBook Packages: Springer Book Archive

Publish with us

Policies and ethics