This research examines whether a competitive advantage exists for insurers which provide independent agencies with rating software to generate price quotes. Data relative to the Business Owners line of insurance were collected from several Wisconsin agencies which represent several BOP insurers,...

After disinflation has been achieved, agents who form more sophisticated forecasts have lower confidence in the sustainability of a peg compared to less sophisticated agents. Furthermore, sustained financial stability leads to a declining proportion of sophisticated agents. Thus, the credibility...

Many countries fix their exchange rate in order to bring financial stability. Usually, inflation declines and output expands but contractual agreements retain their short time frame, investment is sluggish, and economic growth slows down a few years later. This outcome is often attributed to...