Jarchow, Hans-Joachim
Feste oder flexible Wechselkurse? – Erfahrungen vom Goldstandard bis zur Gegenwart
Läufer, Nikolaus K. A.
Seignorage-Pool der EWU, Pool-Verzerrung und Seignorage-Veränderungen durch den Euro
Conrad, Christian A. and Stahl, Markus
Parallels with the 1920s Stock Market Boom and the Monetary Policy
Theissen, Erik
Internalisierung und Marktqualität: Was bringt Xetra Best?
Schäfer, Dorothea
Restructuring Know-how and Collateral
Heilemann, Ullrich
Good Policies and Good Luck – What the U.S. "Fabulous Decade" teaches us and what it does not
Löffler, Andreas
Ein Paradox der Portfoliotheorie und vermögensabhängige Nutzenfunktionen. Mikroökonomische Fundierung (Wolfgang Breuer)
Jarchow, Hans-Joachim
"Fixed or Flexible Rates of Exchange? Experience Ranging from the Gold Standard up to the Present Time"
This article discusses a period of over 120 years of exchange-rate policy experience gathered with the classic gold standard, the Bretton Woods System, European monetary integration, the transformation process in eastern Europe as well as more recent financial and monetary crises. Especially two hypotheses has been highlighted in this article’s evaluation and been substantiated by exchange-rate policy experience: 1. Countries with liberalised systems of capital movement and fixed rates of exchange lose their monetary policy autonomy in a policy course aimed at economic stability. 2. Tying the exchange rate to a currency functioning as an anchor of stability may be helpful in curbing high rates of inflation, but may under certain circumstances result in risks to country’s international competitiveness in the long run. When including into the evaluation also the experience gathered with the wider post- Bretton Woods System flexibility of the exchange-rate system, the answer to the question put in the title of this article that is based on the conclusions derived from exchange-rate policy experience is as follows: exchange rates should be flexible or, if they are fixed, they should be fixed in a credible manner.
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Läufer, Nikolaus K. A.
"Seignorage Pool of the European Monetary union, Pool Bias and Seignorage Changes because of the Euro"
To ascertain seignorage changes because of the euro, the hitherto non- existent capital theoretic frameworks has been developed. This included clarifying the role of seignorage pooling in the EMU. This article shows that such pooling consists of two components, i. e. a dynamic and a static one. The dynamic component ensures that the pool acts as an insurance of the seignorage against fluctuations of the national shares in the European monetary base market. The static component, by contrast, serves to measure a problematic pool distortion. Finally, the seignorage model is used for ascertaining the seignorage change because of the EMU by way of simulating two scenarios. This clarifies the relevance of seignorage change estimates that can be found in the specialised literature. Finally, the importance of the central bank decisions (dated 06 december 2001) on seignorage pooling is examined. In addition, alternative concepts and approaches are discussed and the role of inflation is analyzed.
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Conrad, Christian A. and Stahl, Markus
"Parallels with the 1920s Stock Market Boom and the Monetary Policy"
We have been able to observe a strong increase in stock market valuations in the Nineties. Milton Friedman and Barry Eichengreen compare the 1990s with the "Roaring Twenties". This paper examines the developments on the US stock market in relation to the monetary policy in the Twenties and the Nineties, and attempts to highlight parallels. Monetary policy reacted in the Nineties similarly to the way it did in the period of Twenties. First the Federal Reserve tried to slow down the stock market boom with successive increases in interest rates after low interest rate levels had been stimulating stock market speculation. Later it was inversed. In contrast to 1929 the American Federal Reserve Bank has reduced the interest rate several times since the beginning 2001. In relation to the length of time it is the most drastic interest rate reduction in the history of the Fed. Certain factors indicate a speculative bubble on the stock market in both decades and a strong influence of the monetary policy (JEL B 22, E 52, G 12, N 22)
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Theissen, Erik
"Internalization and Market Quality: An Assessment of Xetra Best"
Deutsche Börse AG plans to introduce a system (Xetra Best) allowing brokers and broker-dealers to internalize the orders of retail customers. Further. Xertra Best supports payment for order flow arrangement. Both internalization and payment for order flow may be detrimental to market quality. This paper discusses advantages and disadvantages of these arrangements. It draws on experiences made in the US. We derive policy implications that aim at a more stringent interpretation of "best execution", and at higher transparen
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Schäfer, Dorothea
"Restructuring Know-how and Collateral"
A close relationship often involves lenders in workouts for their distresses clients. Since restructuring activities need special expertise, banks must have previously accumulated restructuring know-how. We analyze the factors which induce banks to invest restructuring know-how and explore the relationship between restructuring know-how and outside collateral. We find that banks are likely to accumulate restructuring know-how if they enjoy market power or finance a large project. Outside collateralisation and restructuring know-how are substitutes. Since restructuring know-how preserves the value of the bank’s inside collateral, this result indicates that empirical studies on debt securization and financial contracting need to distinguish clearly between the two types of collateral. (JEL G 33, G 34)
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