IDEAS home Printed from https://ideas.repec.org/h/pal/palchp/978-1-349-07120-3_5.html
   My bibliography  Save this book chapter

Eurocurrency Arbitrage

In: Eurodollars and International Banking

Author

Listed:
  • Ian H. Giddy

Abstract

It is well known that alternative views of the nature of the Eurocurrency market have important public policy implications. What is less widely acknowledged is that these alternative views depend importantly on assumptions about the efficiency of arbitrage between the domestic and Eurocurrency markets. For example, whether central banks’ deposits of their reserves in the Euromarket affect the size of the market depends on whether such placements are arbitraged back into domestic markets; and whether separate monetary intervention is needed to affect Eurodollar credit conditions depends on how readily domestic conditions are transmitted to the offshore markets. It follows that an understanding of the elasticity of arbitrage between the domestic and offshore markets, and among the different segments of the Eurocurrency market, might go a long way towards eliminating incorrect models of the Eurocurrency market, and therefore eliminating inappropriate policy prescriptions.

Suggested Citation

  • Ian H. Giddy, 1985. "Eurocurrency Arbitrage," Palgrave Macmillan Books, in: Paolo Savona & George Sutija (ed.), Eurodollars and International Banking, chapter 4, pages 123-136, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-349-07120-3_5
    DOI: 10.1007/978-1-349-07120-3_5
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:palchp:978-1-349-07120-3_5. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.