In determining the maturity structure of bank loans in the presence of pre-determined short-term international liabilities, we show that maturity mismatches in banks’ balance sheets are fully consistent with the assumption of banks acting as self-interested, optimising agents. Although often...

Since the financial crisis of 1997-98 and the subsequent sharp capital outflows from economies in Emerging Asia, the region has been running persistent balance of payments surpluses. The region has consequently become a net exporter of capital to the rest of the world while still depending very...

Apart from exchange rate objectives which have resulted in reserve accumulation as a side effect, Asian countries have chosen explicitly to build up reserves for precautionary motives. This paper explores the issue of optimal precautionary demand for reserves by a central bank within a context...

Empirical evidence of transfer pricing suggests that US sales to affiliates based in low taxed countries are underpriced. The argument has been made that, by symmetry, US sales to affiliates in high tax countries are overpriced. We show that this symmetry assumption is far from certain once...