Regulations and frictions of the market for emerging market bonds keep up the price of capital demanded by emerging countries. Instruments of modern finance, i.e. a pool of emerging market bonds refinanced via an enhanced Asset Backed Securities structure, can significantly reduce the interest...

Stabilizing the exchange rate is a major monetary policy goal in a number of CIS countries. We present a microstructure model of the foreign exchange market based on technical trading that allows us to categorize the de facto exchange rate regimes and derive a market based measure of the...

In contrast to the well-known twin currency and banking crises the literature has so far neglected a second type of twin crises, the simultaneous occurrence of currency and debt crises. The decision of a government to devalue and/or to default is closely interlinked through the government's...

The paper analyses regional growth and convergence in a sample of 31 Central and Eastern European regions over the period 1990-2002. We find that the regional disparity has decreased in the first half of the 1990s. Thereafter it has remained stable. Almost all of the reduced disparity seems to...

Stabilizing the exchange rate is a major monetary policy goal in a number of CIS countries. Based on a microstructure model of the foreign exchange market with heterogenuous and technical traders we classify the de facto exchange rate management and derive a market based measure of the...

Kolb's theory of experiential learning provides a natural setting to evaluate simulation games. In this article, an experimental design is developed to test whether economic simulation games support the learning process corresponding to Kolb's experiential learning cycle. The empirical results...

The microeconomic structure of foreign exchange markets can cause excessive volatility in flexible exchange rate regimes. The market entry of chartists changes the composition of the foreign exchange market and leads to excessive volatility. Our chartist model predicts a continuum of equilibria...

The paper extends and empirically tests the noise trader exchange rate model of Jeanne and Rose (2002). We introduce technical trading in the exchange market as a source of noise and explicitly incorporate monetary and exchange rate policy. With these modifications it is possible to directly...

This paper examines the contemporaneous relationship between the exchange rate regime and structural economic reforms over a period of 30 years. Using panel data techniques, we look at both a broad 'world sample' and an OECD country sample. We investigate empirically whether structural reforms...

In this article, an alternative eurobond approach is developed by applying an asset-backed security (ABS) transaction to a pool of eurozone sovereign bonds. Based on the new approach two different rules to distribute the associated interest gains are analyzed. Within the ABS structure a special...