Card payment systems are sometimes accused of taking from the poor and giving to the rich. The argument is as follows: High card fees are leading to higher retail prices for both, card users and cash users. However, high income card holders are receiving rewards when purchasing by card. The...

As well as theoretical evidence advocating the intertemporal view, the authors present four case studies in support of this approach: Germany before and after unification, Spain before joining the EMS, the United States since the early 1980s, and Japan’s persistent current account surpluses.

In this study it is attempted to estimate the amount of speculation in foreign exchange market.

Garber and Spencer have argued that dynamic hedging may lead to perverse results when interest rates are used to defend an exchange rate. This paper shows that interest rate changes have little effects on dynamic hedgers when volatility is high.

Using the Branson model as an example, this paper seeks to clarify the role of interest rate and exchange rate changes in asset market models. Focusing on short-term adjustments, it is shown that portfolio shifts mainly affect relative interest rates in different countries. Only to the extent...