Monetary Implications of Cross-Border Derivatives for Emerging Economies
| Autor: | Armando Méndez Morales |
|---|---|
| Rok vydání: | 2001 |
| Předmět: |
Derivative (finance)
Interest rate derivative Currency Cost of capital Monetary policy Economics General Earth and Planetary Sciences Economic model Currencies Financial systems Economic models Foreign exchange International financial markets Monetary operations Options Spot exchange rates Cross-border financial transactions central bank derivative hedging monetary fund Financial Markets and the Macroeconomy Asset (economics) Monetary economics Emerging markets General Environmental Science |
| Zdroj: | IMF Working Papers. :1 |
| ISSN: | 1018-5941 |
| DOI: | 10.5089/9781451847864.001 |
| Popis: | This paper surveys concepts, practices and analytical literature to assess benefits and risks for monetary stability of cross-border currency and interest rate derivative operations in calm and turbulent periods, with a view of extracting implications for emerging economies. Monetary authorities must prevent one-sided positions in the currency, favor asset substitutability, and incorporate the enriched information set provided by derivative-based transactions into monetary policy design. In some circumstances, the use of derivatives by monetary authorities may help fulfill this role. By contrast, surcharges to compensate for a downward impact of derivatives on the cost of capital appear neither advisable nor necessary. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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