Internet based technologies, such as mobile payments, social networks, search engines and cloud computation, will lead to a paradigm shift in financial sector. Beside indirect financing via commercial banks and direct financing through security markets, a third way to conduct financial...

This paper investigates how different monetary policy designs alter the effect of carry trades on a host small open economy. Capital inflows are expansionary, leading the central bank to raise the interest rate, increasing carry trades' returns, and generating further capital inflows (carry...