Topical Collection "International Money and Finance: Business as Usual or Brave New World?"

A topical collection in Journal of Risk and Financial Management (ISSN 1911-8074). This collection belongs to the section "Banking and Finance".

Editor

Prof. Dr. Jaime Marquez
E-Mail Website
Guest Editor
Johns Hopkins School of Advanced International Studies (SAIS), Washington, DC 20036, USA
Interests: economics; international economics; international monetary economics; international trade theory and policy

Topical Collection Information

Dear Colleagues,

That international monetary and financial arrangements adjust to unforeseen economic and political developments is clear from history. The predictability of these adjustments is not, however, always clear: The question of whether we can rely on history to generate forecasts is ever-present. As a result, developing the methodology to understand the adjustments and assembling the quantitative evidence of their importance is relevant for assessing risks and developing alternative financial management strategies. The overarching question is to what extent economic relations are autonomous—that is, invariant to unforeseen developments. Such evidence is also relevant to the academic community, to policymakers, and to professional practitioners. This Special Issue of the JRFM is seeking papers assessing the quantitative importance of changes in the character of international interdependencies in response to unforeseen developments. 

The questions of interest include:

  • What explains the 25% decline in the aggregate of notional values of OTC derivatives since 2013 reported by the BIS?
  • Has the responsiveness of U.S. interest rates to changes in the foreign demand for U.S. Treasury Securities been affected by the financial crisis of 2008?
  • Conventional and unconventional international spillovers of monetary policy
  • What factors may account for recent declines in the neutral interest rates across industrial countries?
  • Monetary policies
    • Central bank management of MBS holdings and reinvestment
    • Forward guidance
    • Negative interest rates
    • Exit strategies
    • International interdependency of monetary policy rules
    • Global macro prudential monetary policies
  • What explains international reserves holdings of emerging market economics?
  • Will the RMB displace the Japanese Yen and the British Pound Sterling as reserve currencies? If so, when?
  • The relation between commodity prices and exchange rates: causal or casual?
  • What are the implications of climate changes for modeling financial risks and financial management?

Accepted papers will receive a 35% discount relative to the Journal’s publication fee.

Prof. Dr. Jaime Marquez
Guest Editor

Manuscript Submission Information

Manuscripts should be submitted online at www.mdpi.com by registering and logging in to this website. Once you are registered, click here to go to the submission form. Manuscripts can be submitted until the deadline. All papers will be peer-reviewed. Accepted papers will be published continuously in the journal (as soon as accepted) and will be listed together on the collection website. Research articles, review articles as well as short communications are invited. For planned papers, a title and short abstract (about 100 words) can be sent to the Editorial Office for announcement on this website.

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Published Papers (3 papers)

2020

Article
The Effect of Exchange Rate Volatility on Economic Growth: Case of the CEE Countries
J. Risk Financial Manag. 2020, 13(8), 177; https://doi.org/10.3390/jrfm13080177 - 10 Aug 2020
Cited by 1 | Viewed by 1236
Abstract
The exchange rate is a key macroeconomic factor that affects international trade and the real economy of each country. The development of international trade creates conditions where volatility comes with the exchange rate. The purpose of this paper is to examine the effect [...] Read more.
The exchange rate is a key macroeconomic factor that affects international trade and the real economy of each country. The development of international trade creates conditions where volatility comes with the exchange rate. The purpose of this paper is to examine the effect of real effective exchange rate volatility on economic growth in the Central and Eastern European countries. Additionally, the effect, through three channels of influence on economic growth which vary on the measurement of exchange rate volatility, is examined. The study uses annual data for fourteen CEE countries for the period 2002–2018 to examine the nature and extends the impact of such movements on growth. The empirical findings using the fixed effects estimation for panel data reveal that the volatility of the exchange rate has a significant negative effect on real economic growth. The results appear robust with alternative measures of exchange rate volatility such as standard deviation and z-score. This paper suggests that policymakers should adopt different policies to keep the exchange rate stable in order to foster economic growth. Full article
Show Figures

Figure 1

Article
A Note on the Empirical Relation between Oil Prices and the Value of the Dollar
J. Risk Financial Manag. 2020, 13(8), 164; https://doi.org/10.3390/jrfm13080164 - 28 Jul 2020
Viewed by 641
Abstract
This paper offers an empirical characterization of the relation between the international price of oil and exchange rates that is both useful and reliable. Our characterization is useful because it rests on information of asset prices that are determined in functioning asset markets. [...] Read more.
This paper offers an empirical characterization of the relation between the international price of oil and exchange rates that is both useful and reliable. Our characterization is useful because it rests on information of asset prices that are determined in functioning asset markets. Our characterization is reliable because its maintained assumptions are not rejected by the data. Four features differentiate our work from previous analyses. First, our reliance on bilateral rates opens previously ignored financial arbitrage opportunities between oil prices and exchange rates. Second, our emphasis on statistical testing makes our characterization empirically reliable. Specifically, we use a vector-error correction modeling strategy in which both oil prices and exchange rates are endogenous. This framework allows testing for the existence of an arbitrage relation, for the direction of causality, for parameter constancy, for white noise residuals, and for forecast accuracy. Third our reliance on data through 2020 makes our analysis timely. Fourth, to emphasize the advantages of our approach, we compare our results to those derived for formulations relying on effective exchange-rate indexes. Full article
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Figure 1

Article
Do Capital Flows Matter for Monetary Policy Setting in Inflation Targeting Economies?
J. Risk Financial Manag. 2020, 13(7), 139; https://doi.org/10.3390/jrfm13070139 - 30 Jun 2020
Cited by 1 | Viewed by 634
Abstract
The aim of this study is to determine if capital flows can account for the international effects on domestic monetary policy, using an augmented Taylor rule model. In addition to the standard determinants of nominal interest rates, we include capital flow measures to [...] Read more.
The aim of this study is to determine if capital flows can account for the international effects on domestic monetary policy, using an augmented Taylor rule model. In addition to the standard determinants of nominal interest rates, we include capital flow measures to show how central banks consider this important factor when deciding on the most appropriate monetary policy. Using a panel of inflation targeting economies and the dynamic panel approach, this study finds that capital inflows and outflows are an important determinant of nominal interest rates. Full article
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