학술논문
The International Liquidity Concept and Developing Economies' Foreign Exchange Markets.
Document Type
Article
Author
Source
Subject
*International finance
*Foreign exchange
*Interest rates
*Development economics
*Socioeconomics
*Capital movements
*Deposit insurance
*Banking laws
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Language
ISSN
1468-1838
Abstract
The article discusses the concept of international liquidity and its significance in analyzing foreign exchange markets in developing and emerging economies. It defines international liquidity as the sum of central bank reserves, resident banks' liquid assets, and international currency notes. The paper highlights the unique characteristics of foreign exchange markets in these economies, emphasizing their local nature. It also discusses exchange rate determination in developing economies as a result of the equilibrium on the country's international liquidity market. The article suggests that future research should focus on building foreign exchange models centered around the equilibrium in the international liquidity market. [Extracted from the article]