Monetary Agreements Research Articles

The Economy of Poverty-stricken Countries is Largely Dependent on the Economic Development of the United States

This case study investigates the multifaceted relationship between poverty-stricken countries and the economic development of the United States. At its middle, the survey hopes to see the value in how much nations grappling with poverty rely upon the money related prosperity and techniques of the US to help and move their own monetary conditions. The investigation spreads out against the setting of a globalized economy, where interconnectedness is a fundamental quality. The assessment uses a mixed techniques approach, solidifying quantitative examination and emotional encounters. On the quantitative front, the survey explores financial markers all through a specific time span to notice examples and models. At the same time, abstract evaluations are made through all around interviews with key accomplices, including policymakers, monetary investigators, and specialists from desperation stricken countries. This twofold method framework means to give a thorough cognizance of the various parts of the financial relationship under a magnifying instrument. The disclosures uncover a huge association between's the monetary bearing of the US and the thriving of dejection stricken nations. The audit recognizes fundamental variables like monetary agreements, new aide courses of action, and overall monetary components that basically influence this dependence. Furthermore, it reveals information into the inadequacies and impels looked by these countries because of their dependence on the cash related tirelessness of the US. In sensible terms, this assessment holds relevance for policymakers, monetary well-informed authorities, and by and large affiliations. It incorporates the principal for disheartening stricken countries to confine their money related frameworks, thusly decreasing their shortcoming to external monetary shocks. The outline sets commonsense outcomes that can prepare the improvement concerning versatile strategies, organizing nations toward certifiable money related progress that is less reliant upon the monetary sufficiency of a singular country. No matter what its liabilities, the clever appraisal sees unequivocal impediments. It highlights the unpredictability of money related affiliations, seeing that the evaluation, while broad, may not get the phenomenal nuances of individual country experiences. The rapidly creating commonly money related circumstance gives burdens in expecting broadened length considerations full affirmation. According to a social point of view, the coherent assessment snares the existences of people in destitution stricken nations. Cash related approaches and choices made by the US give fundamental weight in outlining the everyday certifiable components of those living in these countries. Understanding these parts becomes indispensable for enabling in general participation and chasing after fair money related new turn of events. To the extent that development and worth, the context oriented examination stays as a significant obligation to the ongoing composition. By offering a comprehensive assessment of monetary circumstances, it gives a foundation to extra ask for and technique improvement in the space of overall financial unevenness. The encounters got from this assessment are instrumental for scholastics, policymakers, and overall components attempting to investigate the complexities of a globalized financial scene with an eye toward empowering sensible and fair turn of events.

The Legal Relations of the European Union with the Principality of Monaco

The European continent has only one micro-state that is not landlocked: the Principality of Monaco. This city-state along the French Riviera is an independent state under international law and is not an EU Member State. Therefore, the law and policy of the EU’s external relations applies, which must cater for the Principality’s peculiar existence because of practical necessity. The EU retains differentiated legal relations with its closest geographical neighbours, and the EU-Monégasque relationship sees several unilateral EU measures taken to account for Monaco, as well as a limited array of international agreements between the parties, including a monetary agreement. These cumulatively make up the legal aspects to their international relations with each other. At first sight, these legal relations appear limited. Yet, as this article establishes, EUMonégasque legal relations have widened and deepened over time, and an association agreement is on the horizon to account for the necessitated intensity of cooperation on a legal footing. Such a development would bring the Principality legally closer to the EU than it ever has been before. European Union, EU Rapid Deployment Capacity, International Humanitarian Law, EU Strategic Compass, multinational operations, accountability, CFSP, peacekeeping, crisis management

ЗОЛОТОЙ РУБЛЬ В УСЛОВИЯХ МЕЖДУНАРОДНОГО ТРАНСФОРМАЦИОННОГО КРИЗИСА

The current situation in the Russian economy can be compared in complexity with the state of affairs a hundred years ago. Again, our country faces questions of a theoretical and practical nature regarding the strategy and tactics of building a new economic system in the context of the restructuring of the global world order. The institution of money, being a backbone, performs the functions of a universal indicator of the effectiveness of economic practices and a tool for ensuring the financial security of the country. Modern state money, having changed commodity and symbolic forms, has turned into information that is distorted, adjusting to the interests of the largest economic actors. In this regard, there is an urgent task to determine the essence and form of money, which must meet the strategic objectives of the economic development of our country in the face of sanctions, on the one hand, and the global transformational crisis, on the other. The solution to this problem can be a return to a stable national currency, backed by both gold and non-precious metals, which have every reason to increase their status as a means of ensuring the stability of money as a result of the achievements of the scientific and technological progress and the revision of international monetary agreements of the past twentieth century.

The Legal Relations of the European Union with the Vatican City State and Holy See

The EU has differentiated legal relationships with its nearest geographical neighbours. Arguably, none is more unique than that of the EU with the Vatican City State (VCS) (and by extension, the Holy See). Between the parties is a mere ‘monetary agreement’ that facilitates the official use of the single currency in the territory. It is the only bilateral legal commitment that the parties have undertaken. Yet, this apparent simplicity masks a deeper reality. In fact, the monetary agreement currently in place, which replaced a prior monetary agreement, has now de facto put in an institutional framework on the legal relations of the EU with the Vatican City State and Holy See, with a Joint Committee to govern monetary arrangements, and an obligation to implement, in its own way, many aspects of EU financial regulation. The monetary agreement also provides for jurisdiction of the Court of Justice of the European Union to settle disputes arising therefrom. This article contextualizes and analyses the legal relations of the EU with the Vatican City State and Holy See, and argues that more embedded legal relations in the future will be inevitable, leading beyond a mere monetary agreement, but one leading to the adopting of a more sophisticated international agreement. EU, Vatican City, Holy See, Monetary agreement, EU acquis

Monetary Agreements Reform and Issue of the Key Fiscal Convergence Criterion in the West African Economic and Monetary Union (WAEMU)

This paper estimates a fiscal deficit threshold that maximizes economic growth and is favorable to business cycles synchronization given the compliance of countries. The analysis covers the eight countries that form the West African Economic and Monetary Union (WAEMU) across 1990-2018. Our results show that 11.42% of the Gross Domestic Product (GDP) is the fiscal deficit threshold which should not to be exceeded and that fulfills the aforementioned conditions. Since the debt relief program in 2006, however, this threshold has been reduced from 11% to 3.97%. Therefore, compliance with the key fiscal convergence criterion limiting the fiscal deficit to 3% of the GDP and in force in the Union is pro-growth and favorable to business cycles synchronization. However, even if this convergence criterion seems rigorous for fiscal discipline and can be maintained, it could be adjusted to 4%. The paper discusses the advantages of this proposed adjustment.

French Economic and Monetary Policies in Francophone Africa:

Since granting independence to her former colonies (especially the countries in the West and Central Africa subregions), France has maintained tight economic, political, and to a great extent, social control over their internal and external affairs. These continued ties with France have become the subject of contentious debates (previously considered taboo) among scholars in recent times, evidenced in the development of activism in Africa and continental Europe where the former has been sensitized or radicalized about France’s exploitative approach to economic partnership. The economies of these African nations have suffered stagnation and retrogression in contrast to their non-French-influenced neighbors. This essay employs a literature review to assess the impact of French hegemony over these former colonies, therefore providing a cogent argument for the abolition of the monetary agreement in favor of a local currency, and cessation of political dependencies that also carry a negative stigma. Intellectuals and politicians have argued that the continued use of the CFA franc currency (a relic of colonialism with a different twist) is exploitative; recognized even by French politicians who have appealed to their government to employ moral and ethical considerations to desist from the persistent exploitation of Africa. Social movements have developed today in demanding that African nations still using this currency should withdraw from the agreements due to the severe negative effects on economic development.

Towards an explanation of the Euro FX market reaction in the EU: A review of European integration during the EU crises

We review market participants' actions and the EU afterthe introduction of the euro and during the crises period and Brexit process. The crucial factor is the feedback effect in the reactions of the market participants and the EU. The euro was introduced in a compromised monetary union agreement, essentially underlining the European integrative process issues that were highlighted by the euro crises. Hence, for this reason, it is hard to explain the euro crises without referencing the European integration theories. On the other hand, it is difficult to understate the behavioural factors, including greed and fear, in the full explanation of thecrises. At the heart of this research is the introduction of a new model of testing the stability of the market extending the variance bound test of (Fakhry & Richter, 2015) underpinned by a Markov Switching GARCH model. We analyse the stability of the Euro FX Market from 1st January 1999 to 31st December 2019. We found a mixture of over and under reactions defining the three sub-periods which given the Euro heuristic influencing both the market participants’ and EU’s views seem to be an acceptable result. Keywords. Behavioural Finance, EU Integration, Euro, Euro Crises, Long/Short Run, Market Stability. JEL. C51, D81, G01, G02, H77.

From optimism to pessimism: The stability of the Euro FX market in the short and long run

Abstract. We review the EU’s actions over the euro’s lifetime; since its introduction thru to the populist uprising of the late 2010s. The euro was introduced on a wave of optimism throughout the EU, although based on a compromised monetary agreement. Essentially, underlining the crisis and movement from optimism to pessimism in the EU integration road. Thus, it is hard to analyse the euro without reviewing the theories influencing this road. Furthermore, we analyse the long and short-run market stability of the euro FX market using the variance bound model of (Fakhry & Richter, 2018). However, it is difficult to explain the market analysis without referencing behavioural finance. Thus we use key elements of behavioural finance, such as the opposite scale behaviours of greed and fear, to fully explain the timeline analysis of the euro FX market stability in both the long and short runs. At first glance, the result was unexpected due to the critical factor that the market was significantly volatile in the long run; despite conventional wisdom dictating that in the long-run, the financial markets are generally stable. One possible explanation is that the market participants are fearful of the long-run future of the Euro. Keywords. Behavioural Finance, EU Integration, Euro, Euro Crises, Long/Short Run, Market Stability. JEL. C58, D81, G01, G02, H77.

Rights and obligations system of loan obligation sides in modern law

Introduction. The paper explores the mutual (bilaterally binding) character of the loan agreement. The conclusion that the loan agreement creates not only the rights of the lessor (traditional approach) but also the rights of the borrower is proved. The educational and scientific literature regarding the subjective rights and obligations of the loan agreement parties follows the opinion that the obligation under the loan contract is unilaterally binding as the lender, who is always a right-holder, creates binding obligations, and the borrower will always be the party bound by these obligations. At the same time it is necessary to differentiate between the monetary loan agreement and the loan in kind agreement in connection with differences in a set of the bilateral rights and liabilities of the lender and the borrower. Materials and methods. The method of the analysis of the existing Russian legislation and law-enforcement practice and the existing European standards for legal unification is at the heart of the research. The methods of legal modelling and forecasting made it possible to define the need for introduction of amendments to the existing Russian regulations, as well as the need for correcting court practice. The use of these methods permitted establishing the consequences of making changes and adjustments, as well as revealing how closely Russian law enforcement practice would follow the existing European standards. The legal sociological method permits the assessment of social problems from the standpoint of the legislator and the law enforcer. The method of interpretation complemented the comparative legal analysis, allowing us to understand and compare the Russian and European standards. The use of various methods allowed us to formulate the main theoretical conclusions and make our own proposals on the studied field of public relations. Results of the study. As a result of the conducted research it was revealed that, firstly, the borrower has a system of rights. Consequently, the loan agreement is bilaterally binding. Secondly, the rights of the parties under the loan agreement and the loan in kind agreement differ. In this regard, it is necessary to differentiate the civil legal mechanism for protecting the rights of the parties under the monetary loan agreement from under the loan in kind agreement. The scientific results obtained during the research made it possible to formulate a number of proposals to improve the current legislation. Discussion and conclusion. It is substantiated that the rights of the parties of the loan agreement can be classified into pre-contractual and contractual; into the rights associated with the creation, execution and termination of a loan agreement; into property and non-property rights. Information rights of the borrower are singled out separately, their classification is developed and justified.

Oil Shocks and Macroeconomic Effects of Occasionally Binding Constraint on External Reserves of CEMAC

This paper investigates the macroeconomic effects of Central African States Bank (BEAC) commitment to ensure its nominal anchoring when the underlying external reserves constraint occurs after an oil shock. Indeed, the current monetary agreements place external reserves at the heart of the cooperation between BEAC and the French Treasury, and their fluctuations are the main risks indicators to the durability of the cooperation between these two institutions: a system described as pegged to reserves which neither fully resembles a fixed exchange rate regime or a flexible exchange rate regime, much less an intermediate regime. To this end, there is a need to monitor their ability to cover a proportion of the central bank's liabilities in the short run by tithing the monetary conditions, in order to avoid drastic adjustment measures as devaluation. Therefore, as a result of the fall of these reserves below their long run threshold, the central bank essentially focused on their recovery. Our framework is a Markov-switching approach of the Smets and Wouters textbook model were we have modelled the dynamics of external reserves from the balance of payments identity and the simplified balance sheet of the central bank. The monetary policy rule is also augmented by the gap of reserves to their long run trend. Two scenarios are subsequently evaluated namely, a variation of the probability of occurrence of the constraint while maintaining that of leaving or, conversely, a variation of the probability of exit from the constraint by assuming that its occurrence is fixed. The results obtained show that at the approach of the constraint and in the presence of an oil shock, the behaviour of the central bank induces many undesired effects such as the fall in consumption, investment and production. Conversely, when the probability of exit from the constraint is high, the central bank adopts a somewhat passive behaviour, with a late reaction that makes the imbalances continue. Following the fact that (i) export revenue of the region are mainly composed of oil resources (84%), (ii) imports are rigid and, (iii) the oil price cannot be under control of CEMAC countries for competitiveness purpose, the paper highlights the need for permanent monetary discipline alongside economic diversification.

La stabilité monétaire comme culture ou comment penser l’ordre monétaire au prisme de la culture ? L’exemple allemand

L’objectif de cet article est de saisir la dimension culturelle de la convention monétaire. Les théories (hétérodoxes) de la monnaie ont ouvert la voie à l’analyse des manières dont la monnaie est acceptée comme moyen de paiement et de réserve. La monnaie devient alors l’expression (ou l’émanation) de l’ensemble du corps social. Elle incarne un collectif et, en ce sens, est dotée d’une signification symbolique, souvent saisie par les valeurs partagées au sein de la communauté monétaire. Cette association entre puissance symbolique de la monnaie et valeurs partagées semble se retrouver parfaitement dans la notion de « culture monétaire de stabilité ». Elle oblige néanmoins à s’interroger sur l’articulation entre monnaie et culture. Or la « culture » reste un angle mort des analyses hétérodoxes – conventionnalistes et régulationnistes – de l’économie. L’étude porte sur le cas allemand et sur la culture allemande de stabilité définie comme un large consensus sociétal sur la nécessité d’une monnaie stable. Le croisement des analyses de la théorie de la régulation, de l’économie des conventions ainsi que de la sociologie économique nous permet de proposer une analyse de la culture monétaire de stabilité comme un effet culturel de la forme de l’accumulation capitalistique spécifique prise en Allemagne.

MENJAGA VOLATILITAS NILAI TUKAR: FAKTOR PENDUKUNG PENGEMBANGAN BISNIS DI ASEAN

Currently, economic globalization brings a big impact for business environment in Indonesia. The competition capability is one of requirement to access a broader market. Instead of the manufacture’s competence itself, a conducive macroeconomic condition will support the global competition. If the target of business is a wider market, the stability of currency should be a sustain factor. One of the currency’s risks is exchange rate volatility. The bigger volatility, the bigger risk and unstable condition hence will impede intervention to foreign market. Nowadays ASEAN establish the new integration process after the AFTA trading agreement is not sufficient to construct market and generate a better welfare. AFTA is created for a better and extensive economic integration in 2020 namely ASEAN Economic Community (AEC). Based on more stable economic integration, European Union, it can be concluded that a monetary agreement, moreover the common currency wi l l create more stable economic condition and exchange rate. A heterogeneous economic system, per capita income, economic level, currency and exchange rate among ASEAN countries being a problem for adjustment. This study observes the exchange rate volatility in ASEAN countries. The results of this study showed that the based on the financial integration framework indicator, ASEAN countries require a lot of adjustment that will make a more convergence economic policy to construct financial integration frameworkKeywords : Globalization, AEC, currency volaality, bussines development

Economic deals in the construction industry

PurposeThe purpose of this paper is to investigate the relationship between social-material interaction and the monetary aspects of business relationships in the construction industry. The authors term the formal financial agreements necessary for such activities “deals”, and this paper seeks to open a research avenue to further investigate the multifaceted interaction processes among business actors. The construction industry is a suitable empirical setting for this purpose; its project-based character and societal position of linking business with the construction of essential community infrastructure imply that different types of money-handling activities need to be managed continuously with both short-term and long-term effects taken into account.Design/methodology/approachTo investigate the deals, i.e., the interface between socio-material interaction and the money-handling processes in the construction industry, as well as studying the potential interrelatedness of deals, the authors performed a case study involving three interrelated housing projects in Uppsala, Sweden.FindingsThe study shows that deals do not only have an intricate relationship to the social-material interaction processes among construction actors, but they also become interrelated in specific ways to form “deal structures” as actors engage in different business relationships over time. This means, for instance, that a single deal can enable several other deals, and involved actors have different abilities in performing deals. Hence, most deals are part of a “broader” interaction pattern of social and material resources spanning the organizational borders of individual companies.Originality/valueWithin the industrial marketing and purchasing, the socio-material interaction among actors has been well studied, but less attention has been paid to the monetary dimension and its relationship to the socio-material interaction processes. In particular, this study provides an understanding of monetary agreements in the construction industry.

“Déjà vu” History: The European Crisis and Lessons from Latin America through the Glass of Financialization and Austerity Measures

:The scope of the current European crisis calls for a rereading of mainstream economic theory. Europe is experiencing a “déjà vu” history through which Latin America has already lived. The recurrent crises from the 1970s up to the Lehman Brothers bankruptcy are manifestations of the financialization process and relate to its different facets. The objective of this article is to analyze financialization in the current economic and financial crisis in Europe as well as its role in the Latin American debt crisis. A heterodox perspective is necessary to understand this long process of economic deterioration and discern the global fragility of the current financial system. An explanation of the structural crisis in the Eurozone implies an understanding of the financial and monetary agreements laid out in the Maastricht Treaty and the position of the Central Bank with regard to financial markets. Today, financial investors have been especially attuned to interest rate risks and profitability in the international financial system, in the same way that transnational banks owned Latin American sovereign debt years before.

Fiscal policy under alternative monetary policy regimes

In the particular policy framework of a monetary union, the management of fiscal policy becomes an issue of special relevance, because the fiscal discipline imposed by the monetary agreements could limit the scope of stabilization fiscal policies, and its implications on economic growth. In this paper we will review the theoretical implications of fiscal policy in open economies. But we will pay special attention to the particular case of monetary unions, in order to show the relevance of the macroeconomic model behind economic policy decisions.

Who Invokes the Escape Clause: The Political Determinants of the European Monetary System Realignments

The European Monetary System (EMS) was set up in 1979 as a step in the monetary integration of the European Community. At its core, the EMS worked as fixed but adjustable exchange rates and, despite its success in retaining country membership, it experienced a series of currency realignments against the German currency. This paper links the use of realignments to escape clauses in a monetary cooperation agreement and derives hypotheses about who and when is more likely to invoke such clauses. I argue that realignment behaviour is driven by credibility considerations for domestic monetary policy; implications for European trade; the institutional structure of the EMS and its centrality to the larger process of European integration; as well as the behaviors of the core nations – Germany and France. Using monthly data on exchange rate realignments for all EMS members from 1979 to 1993, I find strong support for the hypotheses.

Does compliance matter? Assessing the relationship between sovereign risk and compliance with international monetary law

An important theory of international cooperation asserts that governments comply with international law because of the reputational costs incurred by reneging on public agreements. Countries that sign binding international agreements in the realm of monetary relations signal their commitment to an open economic system, which should reassure international market actors that the government is committed to sound economic policies. If the theory is correct, we should observe evidence that noncompliance is in fact costly. I test this argument by examining the effect of noncompliance with Article VIII of the IMF’s Articles of Agreement on sovereign risk ratings. The results show that noncompliance with the agreement mitigates any benefits that accrue to Article VIII signatories. The empirical evidence suggests that, in addition to improving economic and political conditions at home, governments in the developing world would improve their access to financial markets by signing and complying with international monetary agreements.

Why doesn't regional monetary cooperation follow trade cooperation?

ABSTRACT Conventional theories in political economy argue that monetary cooperation is more likely in regions with trade interdependence. In practice, however, regional trade cooperation usually does not lead to monetary cooperation. I argue that this disparity results from different political economy logics in the two issue areas. In contrast to trade cooperation, the domestic actor that sacrifices the most in a regional monetary agreement is the government itself, which loses a significant tool for domestic economic adjustment as well as an important political symbol. Thus, monetary cooperation is only likely if there are direct benefits to the government to compensate for its lost monetary control. Benefits to the aggregate economy or to particular economic sectors are usually insufficient compensation. Experience with earlier monetary institutions, however, can in some cases reduce the costs to governments enough to make cooperation feasible. I explore these arguments with two sets of case studies: Central America and West Africa. Central America has had the highest level of trade cooperation in the developing world, but never successfully implemented monetary cooperation. West Africa, by contrast, developed a strong regional currency despite its very low intra-regional trade. West Africa did have, however, experience with prior regional monetary institutions that lowered the costs of new cooperation for newly independent African governments.

Trade effects of monetary agreements: Evidence for OECD countries

This paper analyses the effects of monetary agreements on trade flows using a sample of 25 OECD countries over the period 1950–2004. We find that these agreements have boosted intra-bloc trade. This result especially applies to the case of the euro. More importantly, in contrast to regional trade agreements, all monetary agreements analysed show evidence of trade-creating effects with third countries. Finally, only the euro shows a symmetric impact for the trade-creating effect with non-members, that is, using the euro promotes both the Eurozone's exports and its imports to non-Eurozone markets to a similar extent.

Les choix monétaires européens 1950-1980

This article focuses on three key dates in analyzing the monetary policy options arrived at by the States of Europe over the course of the last thirty years. By the creation of the European Payments Union in 1958, the European States made a regionalist policy option by establishing the intra-European convertibility of their currencies while maintaining exchange restrictions with respect to the dollar zone. In 1958 on the other hand resumption of general convertibility of currencies demonstrated the "global-linkage" policy option of the decision-makers of the period by removing any specifically European substance from the European monetary agreement. From this perspective, the decision of December 1978 to institute a monetary System would clearly appear to be by far the most important initiative taken in some time to reestablish a framework for European monetary cooperation. With regard to international monetary relations, eight countries have therefore, within three decades, chosen two regionalist policy options and one global-linkage policy option. The purpose of this study is to identify the circumstances, reasons and impact of the policy options that have successively been implemented.