01795cas a2200241 a 4500 AALejournalIMF001461 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451847864 1018-5941 BD-DhAAL BD-DhAAL Mendez Morales, Armando. Monetary Implications of Cross-Border Derivatives for Emerging Economies / Armando Mendez Morales. Washington, D.C. : International Monetary Fund, 2001. 1 online resource (40 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper surveys concepts, practices and analytical literature to assess benefits and risks for monetary stability of cross-border currency and interest rate derivative operations in calm and turbulent periods, with a view of extracting implications for emerging economies. Monetary authorities must prevent one-sided positions in the currency, favor asset substitutability, and incorporate the enriched information set provided by derivative-based transactions into monetary policy design. In some circumstances, the use of derivatives by monetary authorities may help fulfill this role. By contrast, surcharges to compensate for a downward impact of derivatives on the cost of capital appear neither advisable nor necessary. Mode of access: Internet IMF Working Papers; Working Paper ; No. 2001/058 Full text available on IMF http://elibrary.imf.org/view/journals/001/2001/058/001.2001.issue-058-en.xml IMF e-Library