The Central Banks around the world are commonly responsible for their exchange rate policies. During the 1990s it has been clear that the controllability of the exchange rates by the central banks' interventions is limited (McKinnon, 1993). When the underlying monetary reserves are bounded,...

Scholars commonly see rent-seeking as destructive, but governments sometimes introduce beneficial liberalizations as they try to maximizing their rents. The export processing zone (EPZ) is an example of a rent-seeking tool with the appearance of a policy for economic development. My model of...