The International Monetary System: A Time of Turbulence

By Jacob S. Dreyer; American Enterprise Institute for Public Policy Research | Go to book overview

Eurocurrency reserve requirement systems presented earlier and considerations of all the Eurocurrency reserve requirement systems in more general models of international financial markets.


Appendix A

In this appendix a version of the equilibrium condition that states that the sum of private demands for U.S. and German treasury securities measured in dollars must equal the sum of supplies of these assets measured in dollars comparable to equations 5a and 5b is derived. The first step is to specify the demands for U.S. and German treasury securities by U.S. and German banks. U.S. banks' demand for the sum of the two types of treasury securities, which they regard as perfect substitutes, is equal to their net worth, plus the deposits they accept, minus their required reserves and the loans they make to both nonbanks and Eurobanks:

(A1)

German banks' demand for the sum of the two types of treasury securities, which they regard as perfect substitutes, is equal to their net worth, plus the deposits they accept, minus their required reserveland the loans they make to both nonbanks and Eurobanks:

(A2)

It is also useful to note that Eurobanks' demand for the sum of loans denominated in dollars from U.S. banks and the dollar equivalent of loans denominated in DMs from German banks, which they regard as perfect substitutes, is equal to the loans they make to nonbanks, plus their required reserves, minus their net worth and the deposits they accept from nonbanks:

(A3)

The desired version of the treasury securities market equilibrium condition is obtained by substituting three items into equation 4: banks' demand for combinations of U.S. and German treasury securities, given by equations Al and A2; the Eurobanks' desired holdings of combina

-335-

Notes for this page

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Project items

Items saved from this book

This book has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this book

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this page

Cited page

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited page

Bookmark this page
The International Monetary System: A Time of Turbulence
Table of contents

Table of contents

Settings

Settings

Typeface
Text size Smaller Larger
Search within

Search within this book

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen
/ 523

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.