In his seminal 1960 study on the dynamics of alternative exchange rate regimes, Robert Mundell proposed a theory of balance-of-payments crises in which speculators base their actions on the observed holdings of central bank foreign reserves. We examine the quantitative implications of this view...

This thesis consists of four chapters that examine different policy relevant economic processes related to exchange rates, interest rates and commodity prices. In the first chapter we empirically analyze the relationship between carry trade positions and some key financial as well as...