The economist John Maynard Keynes (1936) defined speculation as the purchase of securities at a price above their fundamental value with a view to sell them at yet a higher price. . .

Many capital-exporting developing countries look for systematic ways of raising returns on their international currency reserves on a long-term basis by creating sovereign wealth funds (SWFs). . .

Several factors have been found to influence the likelihood of sovereign default. Historical data suggest that the risk premium on foreign debt (over the return on U.S.

The risk that a sovereign will not honor its obligations with foreign investors is mitigated by two factors: the threat of sanction and the loss of reputation.

Sovereign risk refers to circumstances in which governments default on loan contracts with foreigners, seize foreign assets located within their borders. . .

Amore drastic way of weaning a government awayfrom reliance on seigniorage revenue is to dollarizethe economy. . .

A government that is unable to fund its expenditures through conventional taxes or bond sales may become dependent on seigniorage revenues to maintain its existence.

Seigniorage is profit from money creation, a way for governments to generate revenue without levying conventional taxes.

A reserve currency is a foreign currency held by central banks ormonetary authorities for the purpose of exchange intervention (to influence the exchange rate of the national currency). . .

To appreciate the impact of remittances it is helpful to understand why migrants remit.