DEMAND AND SUPPLY FUNCTIONS FOR STOCKS OF EURO-DOLLAR DEPOSITS: AN EMPIRICAL STUDY: COMMENT.
The article presents a structural model of the supply and demand for Eurodollars. Researcher John Makin deserves credit for attacking a subject with such formidable problems, but his model reflects some confusion as to the appropriate view the Eurodollar market. He also draws some questionable concl...
| Publicado en: | Review of Economics & Statistics Vol. 57; no. 3; pp. 350 - 354 |
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| Formato: | Artículo |
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MIT Press
Aug75
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| Acceso en línea: | Ver este registro en EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=hlh&AN=4651875&site=ehost-live header: @attributes: shortDbName: hlh uiTerm: 4651875 longDbName: Humanities International Complete uiTag: AN controlInfo: bkinfo: jinfo: jid: 00346535 RMS jtl: Review of Economics & Statistics issn: 00346535 maglogo: N pubinfo: dt: Aug75 vid: 57 iid: 3 pid: 776 pub: MIT Press artinfo: ui: 4651875 10.2307/1923920 ppf: 350 ppct: 4 formats: tig: atl: DEMAND AND SUPPLY FUNCTIONS FOR STOCKS OF EURO-DOLLAR DEPOSITS: AN EMPIRICAL STUDY: COMMENT. aug: au: Meulendyke, Ann-Marie su: Supply & demand Eurocurrency market Economics Foreign exchange International banking industry Econometric models International finance Makin, John H., 1943-2015 sug: subj: Supply & demand Eurocurrency market Economics Foreign exchange International banking industry Econometric models International finance Makin, John H., 1943-2015 ab: The article presents a structural model of the supply and demand for Eurodollars. Researcher John Makin deserves credit for attacking a subject with such formidable problems, but his model reflects some confusion as to the appropriate view the Eurodollar market. He also draws some questionable conclusions, given limitations that arise because of the short time period and small data sample. Makin recognizes that Eurobank reserves are not a given quantity. He observes that unlike the case with commercial banks in closed economies, where reserves may be taken to be exogenously determined by actions of the central bank, the reserves held by Euro-banks are endogenously determined as precautionary balances held by Eurobanks. The apparent parabolic growth path displayed by Eurodollar deposits so far is consistent with theories of the early stages of a new product. The path of Eurodollar expansion can be formulated as a cumulative response to a gradually recognized cost advantage. Most Eurodollar deposits appear to represent a net addition to total dollar deposits and reserves do not constrain this expansion. pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: Y dt: @attributes: year: 1975 holdings: @attributes: islocal: N |
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