Are crashes catching: exchange-rate crises, once started, tend to spread. For good reasons

Article Abstract:

Investors often believe that when one country experiences an exchange-rate crisis, it is likely to affect neighboring countries, and a study of industrialized nations by Barry Eichengreen, Andrew Rose and Charles Wyplosz bears out the theory. Trade was identified as a key factor for the spread.

User Contributions:

Comment about this article or add new information about this topic:

Comment:  (50-4000 characters)

Name:

E-mail:

Security Code:

Weighing up the anchor

Article Abstract:

The Deutsch mark remains the anchor currency for Europe's exchange rate mechanism (ERM), despite the Bank of France's effort to replace it with the franc by undercutting the Bundesbank's discount rate. ERM-member nations still believe that inflation is best controlled with the mark as anchor.

User Contributions:

Comment about this article or add new information about this topic:

Comment:  (50-4000 characters)

Name:

E-mail:

Security Code:

The last of the good times?

Article Abstract:

Large banks have traditionally earned millions of dollars annually trading international currency, but several factors indicate that the foreign exchange market may no longer be as profitable a venture for such banks as Citicorp.

User Contributions:

Comment about this article or add new information about this topic:

Comment:  (50-4000 characters)

Name:

E-mail:

Security Code: