. In particular, high Northern interest rates are strongly associated with the onset of banking crises in developing …

Regressions of ex-post changes in floating exchange rates on appropriate interest differentials typically imply that … the high interest rate currency tends to appreciate - the `forward discount puzzle'. Using data from the European Monetary …, deviations from uncovered interest parity appear to vary in a way that is dependent upon the exchange rate regime. By using the …

the agent's motivation to perform well. Before the agent chooses his performance, the principal in our experiment decides …

effort. Self-confidence thus enhances motivation, and this gives a time--inconsistent individual a strong incentive to build …

social reputation or self-respect. The presence of rewards or punishments creates doubt as to the true motive for which good …

- as stressed by psychologists - in that they undermine intrinsic motivation. As a result, they may be only weak … motivation, while offers of help may create a dependence. More generally, we identify when the hidden costs of rewards are a myth …