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The growing role of the euro in emerging market finance


  • Masson, Paul R.


More than eight years after the introduction of the euro, impacts on developing countries have been relatively modest. Overall, the euro has become much more important in debt issuance than in official foreign exchange reserve holdings. The former has benefited from the creation of a large set of investors for which the euro is the home currency, while demand for euro reserves has been held back by the dominance of the dollar as a vehicle and intervention currency, and the greater liquidity of the market for US treasury securities. Fears of further dollar decline may fuel some shifts out of dollars into euros, however, with the potential for a period of financial instability.

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  • Masson, Paul R., 2007. "The growing role of the euro in emerging market finance," Policy Research Working Paper Series 4381, The World Bank.
  • Handle: RePEc:wbk:wbrwps:4381

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    References listed on IDEAS

    1. Estrin, Saul & Jones, Derek C. & Svejnar, Jan, 1987. "The productivity effects of worker participation: Producer cooperatives in western economies," Journal of Comparative Economics, Elsevier, vol. 11(1), pages 40-61, March.
    2. Tyson, Laura DAndrea, 1979. "Incentives, income sharing, and institutional innovation in the yugoslav self-managed firm," Journal of Comparative Economics, Elsevier, vol. 3(3), pages 285-301, September.
    3. Cable, John R & FitzRoy, Felix R, 1980. "Productive Efficiency, Incentives and Employee Participation: Some Preliminary Results for West Germany," Kyklos, Wiley Blackwell, vol. 33(1), pages 100-121.
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    Cited by:

    1. Fritz Breuss & Werner Roeger & Jan in’t Veld, 2009. "Global impact of a shift in foreign reserves to euros," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 36(1), pages 101-122, February.
    2. Pavel Trunin & Sergey Narkevich, 2013. "Prospects for the Russian Ruble to Become Regional Reserve Currency," Working Papers 118, Gaidar Institute for Economic Policy, revised 2015.
    3. Narkevich, Siarhei & Trunin, Pavel, 2013. "Prospects for the Russian Ruble as a Regional Reserve Currency," Published Papers dok2, Russian Presidential Academy of National Economy and Public Administration.
    4. Sergey Narkevich & Pavel Trunin, 2012. "Reserve Currencies: Factors of Evolution and their Role in the World Economy," Research Paper Series, Gaidar Institute for Economic Policy, issue 162P.

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    Debt Markets; Emerging Markets; Fiscal&Monetary Policy; Currencies and Exchange Rates;

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