The International Monetary System: A Time of Turbulence

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

The Need for Control over
the Eurocurrency Market

Henry C. Wallich

U.S. monetary authorities have monitored the development of the Eurodollar market since its birth in the 1950s and its expansion into a market for several Eurocurrencies.

I would like first to address some general questions about the Eurocurrency market that are often asked. I will then turn to the possible need for better control of the market from a monetary policy standpoint. In addition, since concern is also expressed from time to time regarding the adequacy of supervision to assure the safety and soundness of banks participating in Eurocurrency banking, I shall briefly touch on this aspect.


Principal Features of the Eurocurrency Market

The Eurocurrency market is an international banking market in bank deposits and loans that are denominated in currencies other than the currency of the country where the bank is located -- for example, dollar deposits and loans of banking offices in London. The phrase "Eurocurrency" developed because the market originated in Europe, chiefly as a market for Eurodollars. Eurodollars still account for about threequarters of the Eurocurrency market, with about half of the remainder being Euromarks. Also, some deposits in the market are denominated in pounds sterling, Swiss francs, and other major currencies. I will focus my comments on the Eurocurrency market as a whole with the reminder that at present it is largely, but not exclusively, a market in dollars.

What is now considered the Eurocurrency market extends beyond Europe to include banking activities in major industrial countries worldwide and in offshore banking centers such as the Bahamas, the Cayman Islands, Hong Kong, and Singapore. Still, the Eurocurrency market

-292-

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 ...
Default project is now your active project.
Project items
Notes
Cite this page

Cited page

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

(Einhorn 25)

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

Note: primary sources have slightly different requirements for citation. Please see these guidelines for more information.

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 Reset View mode
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?

Help
Full screen
Items saved from this book
  • Bookmarks
  • Highlights & Notes
  • Citations
/ 523

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA 8, MLA 7, 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." (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

    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.

    Buy instant access to save your work.

    Already a member? Log in now.

    Search by... Author
    Show... All Results Primary Sources Peer-reviewed

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.