Since the breakdown of the Smithsonian agreement, many countries in the world have adopted the system of flexible exchange rates, and experienced greater exchange rate volatility than had previously been anticipated. But, central banks often engage in buying or selling foreign exchange in order...

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...

Essay One analyzes the forward discount bias in the foreign exchange market as influenced by monetary policy rules. A government response function to external shocks is combined with the monetary model for foreign exchange rate determination. The forward discount bias is more probable when the...

There are three papers in this thesis. First two are on exchange rates and the third one tries to explain why people buy low-price shares and its effect on the market. Chapter one uses Stein's NATREX model to explain the real exchange rate of Hong Kong. It mainly answers two questions. First,...

This thesis includes three essays. The first two essays show that after the unification in Italy there was a great degree of monetary, economic and financial disintegration. Essay 1 concentrates on one aspect of monetary disintegration: the persistence of local pre-unification currencies. The...

It is generally accepted that a depreciation in the currency of one country increases foreign direct investment flows into that country. However, studies based on an option pricing approach and recent FDI flows data from Japan into the US suggest that the FDI flows may decrease as the currency...

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...

By incorporating curb market savings into a growth model, this study developed a unified view about financial development and economic growth, where McKinnon-Shaw school and neo-structuralists part each other. We demonstrate the ambiguous nature of the relationship between financial development...