Significant international attention has been directed to the most pressing problem of the financial crisis of 2008/2009 -- global liquidity shortages. The use of adequate foreign exchange reserves during the crisis helped alleviate pressures. However, this was only partially effective in a number of important cases. Some countries also needed to rely on external official financing. The aim of this article is to compare and analyse the main sources of official global liquidity -- foreign exchange reserves, bilateral swap lines of central banks, regional financial arrangements arid IMF resources. To reach effective outcomes in relation to the accumulation of FX reserves and a strengthening of the global financial safety nets, effective international coordination will be necessary. Adapted from the source document.
The article aims to show both the still very strong position of the USD in the global financial system and assess its likely future position. It illustrates that although the U.S. is no longer the dominant global economic power that it was when the dollar became the global reserve currency, the dollar so far is not in immediate danger of losing its privileged position. Despite the challenges facing the USD as the global reserve currency, it continues its dominant role since no other currency has shown itself strong and credible enough to replace it. Considerations on replacing dollar with other currency are no more than a speculation. Adapted from the source document.
This study is an attempt to deliver a comprehensive (geo)political analysis of the evolution of transit routes to supply Caspian oil and natural gas reserves to world markets using the territory of the South Caucasus. In the initial part of the study, a series of transit options prevailing in the two decades up to 2005 is scrutinized; in 2005, the highly debated Baku-Tbilisi-Ceyhan oil pipeline was eventually built marking the shift in interest from oil transit to natural gas transit. Emphasizing the peculiarities of geopolitical competition for the strategically important area of the post-Soviet South Caucasus that has been continuing between Russia, the United States, and to a certain extent also Iran and Turkey, the article seeks to explore the close interconnection of politics and economics, and on some key occasions also the prevalence of the former over the latter, reaching in this regard beyond Caspian projects.
The discussion of the energy security of Europe is focused mainly on Russia. However, Russia -- Central Asia energy relations became very important in Eurasia after the dissolution of the USSR. While its reserves of strategic raw materials (especially gas) are not comparable with those in Russia, Central Asia could be an additional source for supplying these raw materials to Europe. Europe should be involved in "The Great Game" for Central Asian gas. The significance of Central Asia regarding the increasing demand for gas in Europe cannot be overestimated. On the other hand, due to the growing interest of China & other Asian powers in Central Asia, maintaining a local gas pipeline network which would move gas in the direction of Europe (rather than in the direction of other Asian countries) should be a priority for both European countries & Russia. The rivalry between Russian & non-Russian pipeline projects for delivering gas is secondary in this context. Adapted from the source document.
The post-Keynesian approach to the nature of money brings some other conclusion to the monetary policy, independence of a central bank, & function of commercial banks. The source money is created by demand of businessmen especially. Loans create deposits, deposits create reserves. Central bank plays two roles: lender of last resort & inflation supervisor. Crediting by commercial banks & their credit policy in post-Keynesian economics is considered as credit rationing. If the role of central bank -- lender of last resort -- is not connected with changes of regulation, which reduce new practice of financial markets to avoid regulation, the influence of central bank to fight with inflation declines. Post-Keynesian economics is not directed against competence & independence of central bank. On the contrary, it welcomes the more direct influence of central bank on commercial banks & other financial institutions, however, with use of alternative limiting facilities. 2 Graphs, 15 References. Adapted from the source document.
The first question that we ask ourselves in our article is whether the accounting of the central bank is supposed to respect the principles of internationally accepted standards (especially the International Financial Reporting Standards). We are looking for the basic differences in understanding of terms such as (il)liquidity & (in)solvency on the level of central & commercial banking. We analyze the economic reasons for origination of the long foreign exchange position of the CNB which, under the circumstances of trend appreciation of the exchange rate of the Czech crown, is leading to a cumulative loss. We are discussing whether the current level of foreign exchange reserves of the CNB is excessive or adequate. Special attention is paid to the monetary & financial impact of the loss of the central bank. We are pointing out that losing the central bank means profit for market subjects at the same time. It is not just a "fictitious" accounting problem & it can have its factual impact on the national economy. At the end we are summarizing & assessing the individual opinions regarding the loss of the CNB. Adapted from the source document.
The main purpose of this article is to show by selected case studies to what extent the euro has already managed to establish itself as one of the key international currencies from the point of view of various aspects, to what extent it fulfills the functions of an important international currency, and what are the prospects of the euro's position in the future. Various signals indicate that the euro already fulfills some conditions which would allow it to become a serious competitor to the dollar in a relatively short period of time. The article is also taking notice of some obstacles and drawbacks that the European Economic and Monetary Union (EMU) has to and will have to deal with.First of all, the author deals with the question of whether the eurozone is an optimum currency area. This is one of the principal theoretical problems which has been accompanying the EMU since the very beginning. Then he shifts his attention to the question, concerning what role does the euro play in the world economy at present from the point of view of the share of the eurozone on the world GDP, trade, officialforeign exchange reserves, selected indicators offinancial markets etc. Then he deals with the role of the euro in the world monetary system -- one of the main subsystems of the world economy. Here is presented a survey of countries which have accepted the euro as its single or main currency, and also countries whose currencies are narrowly linked to the euro by means of various exchange rate mechanisms. The next part of the article outlines the potential of the euro in its "conquest" offurther regions of the world. Both those where the euro is becoming or will become the number one currency (e.g. in the countries of Central and Eastern Europe) in a foreseeable future, and those where it will compete with the American dollar (e.g. in Latin America, in the Middle East etc.). In the final part, the author attemptes (use the same tense) to point out some problems which can influence what?missing subject, if and to what extent the euro really will become a strong and stable currency. At the moment, it is not yet possible to answer concisely and clearly the question of whether the euro will become an equivalent competitor to the American dollar. It is important whether the EMU will or will not break up in the course of the coming years or decades. So far, there have not appeared any signals of this kind. It will be substantial how the member countries of the eurozone will be able to handle the first serious crisis, e.g. analogical to that of 1992-1993. At that time, the exchange rate mechanism (ERM) was abandonned temporarily by the 1talian lira and permanently by the British pound. This crisis of the European monetary system has shown the difficulty or even incapacity to set such a monetary policy which would be simultaneously advantageous for all member countries of a certain monetary system. The question is whetlLer it is possible considering there are usually big differences in economical standing between individual countries. A similar or even a more serious crisis could emerge in a longer time horizon. The EMU thus stays a long term project and a long distance run. It is, however, possible to assume that within the next ten years, it could become totally clear whether the EMU project is a great success or a great error. Adapted from the source document.
