The circular flow of dollars in the world financial markets

Pedagogy and the Demand for Eurocurrency Deposits Revisited

“…Moreover, in what may be the most rigorous theoretical treatment of the Eurocurrency market yet publi shed, Tiwari ( 1990), in reference to the Eurodollar segment of the Eurocurrency market, argues that the two systems should, in fact, be viewed as a single entity for analytical purposes. If the two systems are to be viewed as one system for analytical purposes, surely this must imply the presence of a transactions demand for dollars and for Eurodollars.…”