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. . .

Sovereign wealth funds

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). . .

Sovereign risk: Causes and Consequences of Default Risk

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.

Sovereign risk: Sanctions and Reputation

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

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

Seigniorage: Reducing Reliance on Seigniorage Revenue

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

Seigniorage: Hyperinflation

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.

Reserve currency

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). . .

Remittances: Determinants of Remittances

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

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