Over the past decades, there is an increased trend in the international financial integration as countries are removing and relaxing controls on cross-border investment. Capital can flow easily to the destination that offers higher returns as the results of decreasing obstacles to international...

The euro zone crisis illustrates the insufficiency of adjustment mechanisms in a monetary union characterized by a large heterogeneity. Exchange rate adjustments being impossible, they are very few alternative mechanisms. This situation reflects a simple diagnosis. At the level of the whole euro...

This paper examines the presence of nonlinear mechanisms in the exchange rate pass-through (ERPT) to CPI inflation for 12 euro area (EA) countries. Using smooth transition models, we explore the existence of non-linearities with respect to three macroeconomic factors, namely inflation rate,...

Currency overvaluation seems to be the prominent explanation for the 1997–98 Asian financial crisis. Although this is the case, the reinstatement to managed float exchange rate regime in mid-2005, as well as the instability of commodity prices and the recent 2008–2010 global economic crisis,...

Insufficiency of foreign exchange may at times constrain the growth of small open economies which lack the domestic resources to produce import substitutes for their consumption, investment and input needs. This study explores the foreign exchange constraint in three small open Caribbean...

Managing capital flows and liquidity demand have been central issues for emerging market countries. This paper analyzes the effects of financial development and capital flows on foreign reserve accumulation in East Asian economies. Using annual data from 12 Asian economies between 1980 and 2009,...

International commentators seem to have a consensus view that the Chinese yuan is substantially undervalued and the Chinese monetary authority must take speedy actions to redress the currency misalignment by rapid nominal revaluation. This paper argues for a gradualist but comprehensive strategy...

In this paper we attempt to reproduce both the business cycle facts and the equity premium of the Israeli economy—an economy which is "typical" in the sense that investment is much more volatile than output (and consumption). We show that GHH preferences, which are quite common in RBC models...

In the Knowledge-Based Society, not financial assets, but knowledge and competencies have become the most important resources for most companies. This paper objective is to make an initial critical exploration of the essential condition of intellectual capital in maritime transport and it starts...

Globalization is one of the most challenging contemporary processes for governmental decision makers. It contributes to important demographic and economic changes with potential impact on development and quality of life. In the paper there is performed an analysis of these transformations in...