Masson, Paul R.2012-06-082012-06-082007-11https://hdl.handle.net/10986/7584More than eight years after the introduction of the euro, impacts on developing countries have been relatively modest. Overall, the euro has become much more important in debt issuance than in official foreign exchange reserve holdings. The former has benefited from the creation of a large set of investors for which the euro is the home currency, while demand for euro reserves has been held back by the dominance of the dollar as a vehicle and intervention currency, and the greater liquidity of the market for US treasury securities. Fears of further dollar decline may fuel some shifts out of dollars into euros, however, with the potential for a period of financial instability.CC BY 3.0 IGOADVANCED COUNTRIESBALANCE OF PAYMENTSBALANCE OF PAYMENTS DEFICITBASIS POINTSBIDBONDBOND ISSUANCEBOND MARKETSBOND PORTFOLIOSBONDSCAPITAL ACCOUNTCAPITAL ASSETCAPITAL ASSET PRICINGCAPITAL CONTROLSCAPITAL INFLOWSCENTRAL BANKCENTRAL BANKSCOLLATERALCOMMODITIESCOMMODITYCOMMODITY PRICESCONSUMER PRICE INDEXESCONVERTIBILITYCORPORATE BONDCORPORATE BOND MARKETCRAWLING PEGSCREDIT RISKSCREDITORSCURRENCY BOARDCURRENCY COMPOSITIONCURRENCY MARKETSCURRENCY SWAPSCURRENCY VALUESCURRENT ACCOUNT DEFICITCURRENT ACCOUNT DEFICITSCURRENT ACCOUNT SURPLUSESDEBTDEBT INSTRUMENTSDEBT ISSUANCEDEBT ISSUESDEBT SECURITIESDEBT SERVICEDEBTSDEFICITSDEGREE OF RISKDEUTSCHE MARKDEVELOPING COUNTRIESDEVELOPING COUNTRYDIFFERENT CURRENCIESDOMESTIC INFLATIONDURABLEEMERGING MARKETEMERGING MARKET COUNTRIESEMERGING MARKET DEBTEMERGING MARKET ECONOMIESEMERGING MARKET FINANCEEMERGING-MARKETEQUAL SHARESEQUITIESEUROEUROPEAN MONETARY SYSTEMEX POST RETURNSEXCHANGE MARKET INTERVENTIONEXCHANGE RATEEXCHANGE RATE CHANGESEXCHANGE RATE FLEXIBILITYEXCHANGE RATE MOVEMENTSEXCHANGE RATE PEGSEXCHANGE RATE REGIMESEXCHANGE RATE RISKEXCHANGE RATESEXCHANGE RISKEXPOSUREEXTERNAL ASSETSEXTERNAL BORROWINGEXTERNAL DEBTEXTERNAL FINANCINGFEDERAL RESERVEFEDERAL RESERVE BANKFINANCESFINANCIAL CRISESFINANCIAL DEVELOPMENTSFINANCIAL INSTABILITIESFINANCIAL INSTABILITYFINANCIAL INSTITUTIONSFINANCIAL INTEGRATIONFINANCIAL INTERMEDIARYFINANCIAL MARKETSFIXED EXCHANGE RATEFLEXIBLE EXCHANGE RATESFLOATING EXCHANGE RATESFOREIGN ASSETSFOREIGN CURRENCIESFOREIGN EXCHANGEFOREIGN EXCHANGE MARKETFOREIGN EXCHANGE MARKETSFOREIGN EXCHANGE RESERVEFOREIGN EXCHANGE RESERVESFOREIGN EXCHANGE TRANSACTIONSGLOBAL DEVELOPMENT FINANCEGOVERNMENT BONDGOVERNMENT BOND MARKETSGOVERNMENT BOND YIELDSGOVERNMENT BONDSGOVERNMENT DEBTGOVERNMENT PAPERHOLDINGHOLDINGSHOME COUNTRYHOME CURRENCYINDUSTRIAL COUNTRIESINDUSTRIAL COUNTRYINFLATIONINTEREST RATEINTEREST RATESINTERNATIONAL BANKINTERNATIONAL BONDINTERNATIONAL BOND MARKETSINTERNATIONAL BONDSINTERNATIONAL BORROWINGSINTERNATIONAL CAPITALINTERNATIONAL CAPITAL MARKETSINTERNATIONAL DEBTINTERNATIONAL DEBT SECURITIESINTERNATIONAL ECONOMIESINTERNATIONAL FINANCEINTERNATIONAL FINANCIAL STATISTICSINTERNATIONAL LIQUIDITYINTERNATIONAL MONETARY SYSTEMINTERNATIONAL RESERVESINTERNATIONAL TRADEINVESTMENT PORTFOLIOINVESTMENT PURPOSEINVESTMENT PURPOSESJAPANESE YENLIQUID ASSETSLIQUID MARKETLIQUIDITYLIQUIDITY OF MARKETSLONG-TERM BOND MARKETSLONG-TERM DEBTMARKET CONDITIONSMARKET FINANCEMARKET FOR GOVERNMENT SECURITIESMARKET FOR SECURITIESMARKET LIQUIDITYMARKET PRICEMARKET TRADEMARKET VALUEMATURITYMATURITY MISMATCHMATURITY SPECTRUMMONETARY FUNDMONETARY INTEGRATIONMONETARY POLICIESMONETARY POLICYNET DEBTNOMINAL EXCHANGE RATESNOMINAL INTEREST RATESNUMERAIREOFFICIAL RESERVESOPTIMAL PORTFOLIOOPTIMAL PORTFOLIOSOUTPUTPEGSPORTFOLIOPORTFOLIO ALLOCATIONPORTFOLIO DIVERSIFICATIONPORTFOLIO INFLOWSPOSSIBILITY OF DEFAULTPOUNDS STERLINGPRICE CHANGESRAPID GROWTHRATES OF RETURNREPOREPO MARKETRESERVE CURRENCIESRESERVESRETURNRETURNSRISK AVERSIONRISK OF DEFAULTSCENARIOSSECONDARY MARKETSECONDARY MARKETSSETTLEMENTSHORT-TERM CAPITALSINGLE MARKETSMALL ECONOMIESSOVEREIGN DEBTSOVEREIGN ISSUERSSOVEREIGN RISKSTOCK DATASTORE OF VALUESWAPSSWISS FRANCSTAXTAX COLLECTIONTERMS OF TRADETRADESTRADINGTRANSACTIONS COSTSTREASURIESTREASURYTREASURY BILLSTREASURY SECURITIESTREATYVALUATIONVENTURE CAPITALISTVOLATILITYWORLD ECONOMYYENWorld Bankhttps://doi.org/10.1596/1813-9450-4381