• Archives of design research
• /
• v.18 no.2 s.60
• /
• pp.189-200
• /
• 2005

Paper currency is a cultural symbol sign representing identity of a nation as well as a tool of barter system and a measure of value. The purpose of this study is to analyze the design characteristics shown in the pattern of the paper currencies of advanced countries and Korea and to make comparative analysis of the image type of each nation as a cultural code. The results show that 1) the usability of paper currency design was evaluated by denominations, size type, color, braille system and the paper currencies of Switzerland and EU were judged superior to those of the other counties. 2) The national image type represented paper currencies was classified as 'state oriented type' and 'culture & art oriented type'. The countries of Korea, U.S.A, Japan etc. have on the paper currencies the ruling class who contributed to organizing the national system foundation emphasizing their nationalism. In the case of European countries, their paper currencies reveal a variety of citizen who have contributed to art, science, music, architecture without distinction of gender and this fact puts an emphasis on egalitarianism and equality of both senders and importance or cultural art. 3) Paper currency design of Switzerland, Netherlands, France, U.K. was visualized as an art work with utilization of work-type subject, brilliant color, CG technique, unique layout etc. This study provides us with a valuable opportunity to examine the present state of the Korean paper currencies design in Comparison With those of the world's advanced countries. It is expected that this study could be a resource material for new paper currency design and emphasize the importance of the paper currencies representing a national image as a cultural design.

• Journal of Korea Trade
• /
• v.27 no.5
• /
• pp.41-62
• /
• 2023

Purpose - This paper examines whether the imposition of countervailing duties by the United States on undervalued foreign currency is legally consistent with the WTO's SCM Agreement. Design/methodology - The study uses a methodology that involves analyzing relevant WTO agreements, prior panel reports, Appellate Body decisions, and other legal documents. Findings - The findings suggest that to impose countervailing duties, certain legal requirements must be met, including financial contribution, benefit, and specificity. The paper also notes that when calculating the benefits of undervalued foreign currency, losses from import activities due to currency undervaluation must be considered. Additionally, classifying all exports to the US under specific industries or business groups is likely to be inconsistent with the SCM Agreement. Originality/value - Even the US countervailing measures on exchange rate subsidies may not comply with WTO regulations due to incorrect calculation of benefits and a lack of specificity, however, it suggests that when intervening in the foreign exchange market, the measures should aim to achieve only minimum policy goals.

• Journal of Korea Trade
• /
• v.23 no.5
• /
• pp.129-144
• /
• 2019

Purpose - Recent empirical studies have reached mixed results on the effects of financial liberalization and currency crises. We argue that this relationship is likely to depend both on whether controls are primarily on the degrees of financial liberalization and on the stability of the government. Using the disaggregated data on financial liberalization recently developed by Abiad et al (2010) for a sample of 30 emerging countries over the period 1995-2015, we attempt to investigate the political economy determinants of currency crises. Design/methodology - Our empirical model considers the relationship between financial liberalization and currency crises for emerging market economies. This study employs the existing theoretical framework to identify the disaggregate level for financial liberalization across countries. Using a multivariate logit model, this study attempts to estimate the interrelationship among financial liberalization, government stability and currency crises complemented by a case study of South Korea. Findings - Our main findings can be summarized as follows: we find strong support for the proposition that more liberalized financial institutions are positively associated with the probability of currency crises especially under less stable governments, but reduce the risks of currency crises especially for more stable governments. We also examine the role of financial systems with the case of South Korea after Asian financial crises and the results are further supported and consistent with the empirical findings. Originality/value - Existing studies focus on the economic factors across countries. This paper instead attempts to evaluate the effects of financial liberalization and currency crises by incorporating political considerations with newly developed dataset on financial liberalization, which are essential to the understanding of the causes of currency crises.

• Journal of Distribution Science
• /
• v.11 no.10
• /
• pp.55-62
• /
• 2013

Purpose - The purpose of this study is to suggest a risk factor that significantly explains foreign currency risk premia. In recent years, some studies have found that the performance of the simultaneous consumption risk model improves considerably when tested on foreign currency portfolios, which are constructed based on the international interest rates differentials. However, this paper focuses on the long-run consumption risk factor. In our empirical research, we found that the real excess returns of high interest rate currency portfolios depreciate on average, when the future American long-run consumption growth rate appears low. This makes the high interest rate currency portfolios have relatively high risk premia. Meanwhile, the real excess returns of low interest rate currency portfolios appreciate on average, under the same conditions, which results in relatively low risk premia for these portfolios. Therefore, this long-run consumption risk factor might explain why low interest rate currencies do not appreciate as much as the interest rate differential, and why high interest rate currencies do not depreciate as much as the interest rate differential. Research design, data, methodology - In our explanation, we provide new evidence on the success of long-run consumption risks in currency risk premia by focusing on the long-run consumption risks borne by American representative investors. To uncover the hidden link between exchange rates and long-run consumption growth, we set the eight currency portfolios as our basic assets, which have been built based on the foreign interest rates of eighty countries. As these eight currency portfolios are rebalanced every year, the first group always contains the lowest interest rate currencies, and the last group contains the highest interest rate currencies. Against these basic eight currency portfolios, we estimate the long-run consumption risk model. We use recursive utility framework and the stochastic discount factor that depends on the present value of expected future consumption growth rates. We find that our model is optimized in the two-year period of constructing the durable consumption expectation factor. Our main results surprisingly surpass the performance of the existing benchmark simultaneous consumption model in terms of R², relatively risk aversion coefficient γ, and p-value of J-test. Results - The performance of our model is superior. R², relatively risk aversion coefficient γ, and p-value of J-test of our long-run durable consumption model are 90%, 93%, and 65.5%, respectively, while those of EZ-DCAPM are 87%, 113%, and 62.8%, respectively. Thus, we can speculate that the risk premia in foreign currency markets have been determined by the long-run consumption risk. Conclusions - The aggregate long-run consumption growth risk explains a large part of the average change in the real excess returns of foreign currency portfolios. The real excess returns of high interest rate currency portfolios depreciate on average when American long-run consumption growth rate is low, and the real excess returns of low interest rate currency portfolios appreciate under the same conditions. Thus, the low interest rate currency portfolios allow investors to hedge against aggregate long-run consumption growth risk.

• KSII Transactions on Internet and Information Systems (TIIS)
• /
• v.16 no.3
• /
• pp.861-876
• /
• 2022

Cryptoassets such as Bitcoin and Ethereum are widely traded around the world. Cryptocurrencies are also transferred between investors. Cryptocurrency has become a new and attractive means of remittance. Thus, blockchain-based smart contracts also attract attention when central banks design digital currencies. However, it has been discovered that a significant amount of cryptoassets on blockchain are lost or stranded for a variety of reasons, including the loss of the private key or the owner's death. To address this issue, we propose a method for recoverable transactions that would replace the traditional transaction by allowing cryptoassets to be sent to a backup account address after a deadline has passed. We provide the computational workload required for our method by analyzing the prototype. The method proposed in this paper can be considered as a good model for digital currency design, including central bank digital currency (CBDC).

• The Journal of Industrial Distribution & Business
• /
• v.15 no.6
• /
• pp.1-7
• /
• 2024

Purpose: This study aims to explore the significance and potential strategies for revitalizing local currency systems. Designed for use within specific regions or communities, local currencies play a crucial role in supporting and revitalizing local economies. By promoting local consumption and supporting local businesses, local currencies contribute to economic growth and job creation at the community level. Research design, data and methodology: The research methodology involves a comprehensive review of existing literature and various case studies to analyze the effectiveness and sustainability of local currencies. The literature review investigates the theoretical background and diverse implementation cases of local currencies, while the case studies identify the success factors and challenges faced by actual local currency initiatives. Results: This paper confirms that local currencies contribute to economic growth and job creation at the community level by promoting local consumption and supporting local businesses. Additionally, this study investigates the economic, social, and environmental impacts of local currencies. Conclusion: In conclusion, this study analyzes the challenges faced by local currency systems and proposes strategies to enhance their effectiveness and sustainability. These strategies are expected to provide practical assistance in the development and implementation of local currencies, contributing to the revitalization of local economies and the sustainable development of local communities.

• Asian Journal of Business Environment
• /
• v.7 no.4
• /
• pp.5-9
• /
• 2017

Purpose - Many countries rely on currency depreciation or debt-financed government spending to stimulate their economies. Currency depreciation tends to increase net exports and aggregate demand but reduce short-run aggregate supply due to higher import costs. Debt-financed government spending increases aggregate demand, but the crowding-out effect due to a higher real interest rate may reduce private spending and aggregate demand. Therefore, the net impact of currency depreciation or debt-financed government spending on equilibrium real GDP is unclear. Research design, data, and methodology - This paper examines potential impacts of real depreciation of the ringgit, more government debt as a percent of GDP and other relevant macroeconomic variables on aggregate output in Malaysia. Results - Applying the AD/AS model, this paper finds that aggregate output in Malaysia is positively associated with real appreciation during 2005.Q3-2010.Q3, real depreciation during 2010.Q4-2016.Q1, the debt-to-GDP ratio and the real stock price, negatively affected by the real lending rate and inflation expectations, and is not influenced by the real oil price. Conclusions - Real depreciation of the ringgit after 2010. Q3 or sustainable expansionary fiscal policy would be beneficial to the economy.

• Journal of Institute of Control, Robotics and Systems
• /
• v.17 no.9
• /
• pp.932-940
• /
• 2011

This paper presents an integrated analysis of supply chain and financing decisions of multi-national corporation. We construct a model in which multiple currency storage units are installed to manage the currency flows associated with multi-national supply chain activities such as raw material procurement, process operation, inventory control, transportation and finished product sales. Core contribution of this study is to quantitatively investigate the influence of macroscopic economic factors such as exchange rates and taxes on operational decisions. The supply chain is modeled by the Process-Storage Network with recycle streams. The objective function of the optimization is minimizing the opportunity costs of annualized capital investments and currency/material inventories minus the benefit to stockholders interpreted by home currency. The major constraints of the optimization are that the material and currency storage units must not be depleted. A production and inventory analysis formulation, the periodic square wave (PSW) model, provides useful expressions for the upper/lower bounds and average levels of the currency and material inventory holdups. The expressions for the Kuhn-Tucker conditions of the optimization problem are reduced to a subproblem and analytical lot sizing equations. The procurement, production, transportation and financial transaction lot sizes can be determined by analytical expressions after the average flow rates are already known. We show that, when corporate income tax is taken into consideration, the optimal production lot and storage sizes are smaller than is the case when such factors are not considered typically by 20 %.

• KNOM Review
• /
• v.24 no.2
• /
• pp.1-12
• /
• 2021

Recently, research on CBDC (Central Bank Digital Currency) has been actively conducted for various reasons by countries around the world. In addition, with the dazzling development of blockchain technology, blockchain technology is being adopted in CBDC. In this paper, we propose a blockchain-based CBDC system that can be effectively used in the traditional banking system. We also analyze the requirements of CBDC and suggest ways to commercialize CBDC. We present a system design and implementation method, especially in terms of compatibility, interoperability, and privacy.

• The Journal of Information Systems
• /
• v.27 no.3
• /
• pp.43-62
• /
• 2018

Purpose Since the Bitcoin, which was the first virtual currency, was made at 2009, almost 1,000 virtual currencies appeared onstage in the world. Even though virtual currencies have the function of money as a medium of exchange or contract, any of those has not yet entered the commercialization stage. Instead, some of the virtual currencies show the nature of investment assets. In the case of virtual money investment, users tend to use all the information of the world because information transfer is very easy and capital movement is almost free between different countries. In addition, as the transaction sizes of virtual currencies increase, a virtual currency price is no longer independent and is likely to be affected by the prices of other virtual currencies. Therefore, it is necessary to understand the influence among virtual currency markets, which helps successful implementation of investment strategies. Design/methodology/approach This study focuses on the investment product function of virtual money and conducts the analysis using the time series model used in the financial and economic areas. In this paper, we try to analyze the return and volatility transfer effect of virtual money markets through GJR-GARCH model. Findings This study is expected to find out whether we can make market forecasts through reflecting changes in other markets. In addition, we can reduce the trial and error of user decision making by using the information on the yield and volatility transition effect derived from the research results, and it is expected to reduce the opportunity cost of users.