This paper evaluates how the global financial crisis emanating from theU.S. was transmitted to emerging markets. Our focus is on the extent thatthe crisis caused external market pressures (EMP), and whether theabsorption of the shock was mainly through exchange rate depreciation orthe loss of...

The paper assesses the international status of the Chinese currency renminbi(RMB) by recounting and reviewing the recent polices China instituted topromote the use of the RMB in the global market. The evidence suggests that theRMB is gaining acceptance overseas. However, compared with the size...

This paper studies the patterns of fiscal stimuli in the OECD countries propagated by the global crisis.Overall, we find that the USA net fiscal stimulus was modest relative to peers, despite it being theepicenter of the crisis, and having access to relatively cheap funding of its twin deficits....

This paper investigates the association between greater income inequality, de-facto fiscalspace, and sovereign spreads. Using data from 50 countries in 2007, in 2009 and in 2011, wefind that higher income inequality is associated with a lower tax base, lower de-facto fiscalspace, and higher...

We consider writing a derivative contract on some underlying asset in such a way that the derivative contract and underlying asset yield the same payo� distribution after one time period. Using the Hardy-Littlewood rearrangement inequality, we obtain an explicit solution for the cheapest...

We address the problem of estimating the autocovariance matrix of a stationary process. Under short range dependence assumptions, convergence rates are established for a gradually tapered version of the sample autocovariance matrix and for its inverse. The proposed estimator is formed by leaving...

This paper considers the problem of distribution estimation for the studentized sample mean in the context of Long Memory and Negative Memory time series dynamics, adopting the fixed-bandwidth approach now popular in the econometrics literature. The distribution theory complements the Short...

Economic and financial time series frequently exhibit time irreversible dynamics. For instance, there is considerable evidence of asymmetric fluctuations in many macroeconomic and financial variables, and certain game theoretic models of price determination predict asymmetric cycles in price...

The National Bank of Poland does not publish the Monetary Policy Council's voting records before the subsequent policy meeting. Using real-time data, this paper shows that a prompter release of the voting records could improve the predictability of policy decisions. The voting patterns reveal...