This thesis includes three essays analyzing the role of fiat money in decentralized trade. Essay 1 develops a model that describes a two-country-two-currency economy, in which prices are endogenized by using the "split-the-surplus" rule. The government generates seignorage revenue by issuing...

This thesis develops a model of black market for foreign currency that focuses on the interaction of portfolio decisions and the determinants of the net flows of black foreign currency. The model explicitly incorporates foreign exchange restrictions as well as the demands arising from smuggling....

This dissertation contains three essays. The first essay presents a new likelihood based approach for quantification of qualitative survey data on expectations and perceptions. A likelihood ratio test for model consistent expectations is proposed. Evidence from the Monte Carlo simulation studies...

This thesis includes three essays analyzing the role of government interventions in anchoring inflation in an extremely open small economy, Taiwan, whose monetary authority has been frequently using large-size interventions since the 1985 Plaza Agreement. Taiwan's relative success in controlling...

The neoclassical assumptions of perfect competition and constant returns to scale are commonly used within most areas of macroeconomic research. This is generally true of existing research on business cycles and universally true of previous studies investigating the welfare benefits of taxation...