Real Trading Patterns and Prices in Spot Foreign Exchange Markets
Most of the existing empirical literature on FX market microstructure uses indicative quote data derived from Reuters EFX screens. This paper examines...
Arbitrage and Endogenous Market Integration
We analyze a general equlibrium model of strategic arbitraging and intermediation. Arbitrageurs take advantage of mispricings, market frictions and...
Moral Hazard, Insurance, and Some Collusion
A risk-averse consumer purchases an insurance policy; if she suffers a loss, she may receive services from a provider to recover some of the loss...
The Asian Crisis: Experiences and Lessons for Home and Host Supervisor
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Clustering of Initial Public Offerings, Information Revelation and Underpricing
By providing an analysis of sequential going-public decisions the paper outlines conditions under which "hot issue markets" arise, i.e. under which...
Corporate Governance Rules and the Value of Control - A Study of German Dual-Class Shares
The paper uses a dataset of German dual-class shares during 1988-1997 to study the relationship between corporate governance rules and the price...
Conservatism at No Real Cost: Monetary Policy Delegation Reconsidered
This paper re-examines the role of conservatism in the delegation of monetary policy to an independent central bank. We develop a tractable framework...
Life Without the Stability Pact
There is now a real chance that the Euro member states will not abide by the strict rules of the Stability Pact. Economic and political pressures are...
Financial Crises: Plus ça change, plus c'est la même chose
During recent decades most financial crises were caused by excessive public sector expansion. The current Asian crisis, however, had its roots in...
A Model of the Lender of Last Resort
A paper by Charles Goodhart of LSE FMG and Haizhou Huang of the International Monetary Fund.
Structural Breaks, Incomplete Information And Stock Prices
This paper presents empirical evidence on the existence of structural breaks in the fundamentals process underlying US stock prices. We develop an...
Boom In, Bust Out: Young Households and the Housing Price Cycle
The UK experienced a major residential real estate boom-bust cycle from the mid-Eighties to the mid-Nineties, accompanies by unprecedented shifts in...
Utility Functions For Central Bankers: The Not So Drastic Quadratic
Following Blinder’s (1997) suggestion, we examine the implications for the optimal interest rate rule which follow from relaxing the assumption that...
