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 dissertation includes three studies on the use of capital controls in Malaysia. The first two studies focus on empirical investigations of the effectiveness of capital controls. The last study focuses on modeling the determinants of political risk premium associated with potential capital...

This dissertation examines different aspects of capital liberalization and its impact on local stock market development. Specifically, it considers the consequences of opening local stock markets to foreign investors and the effects of allowing local companies to access foreign stock markets....

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....

In four essays, this dissertation examines issues in macroeconomics and stabilization, international lending decisions, banking crises and the interrelation between financial development and growth. Essay One studies stabilization and the dynamics of inflation if monetary policy is transparent...

The negative forward discount bias in the foreign currency was rationalized and tested in the context of rational speculation model. This study reexamines the issue within the context of a two-agent rational speculation model and finds empirically that the negative forward discount bias is still...

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...