Currency crises appear to spread regionally. In this paper we use Bayesian methodology on data from four waves of currency crises in the late twentieth century to examine the mechanism by which currency crises spread from one country to another. In particular, we examine whether trade linkages, “other” unquantifiable linkages proxied for by relative geographical distance, or macroeconomic and f...

The present paper examines the ability to evaluate prices in a familiar currency (French francs, Portugese escudos, or Irish punt) and in an unfamiliar currency (euro). Participants evaluated prices for different items either by selecting the most appropriate price from a set of alternatives (in a timed or not-timed version) or by directly producing a price estimate for each item. The results f...

Over the past three years, cross-border inflows into emerging market (EM) local currency bonds have surged. The returns on these bonds have moved more closely with those on international assets regarded as “safe”, particularly following the euro area debt crisis. This paper first demonstrates that domestic factors have tended to dictate the dynamics of the EM local currency government yield. Th...

Despite the fast growing popularity of in-game purchases of virtual currency (to obtain game enhancing virtual items) in digital games, there is very limited formal research that studies this new business model and its impacts on players’ gameplay behavior and social welfare. This paper builds upon the classic labor-leisure model to capture players’ dual experience of enjoying leisure and earni...

SQL extensions that allow queries to explicitly specify data quality requirements in terms of currency and consistency were proposed in an earlier paper. This paper develops a data quality-aware, finer grained cache model and studies cache design in terms of four fundamental properties: presence, consistency, completeness and currency. Such a model provides an abstract view of the cache to the ...

SQL extensions that allow queries to explicitly specify data quality requirements in terms of currency and consistency were proposed in an earlier paper. This paper develops a data quality-aware, finer grained cache model and studies cache design in terms of four fundamental properties: presence, consistency, completeness and currency. The model provides an abstract view of the cache to the que...

This paper examines the issues related to the competition between two currencies in an agent-based computational economic model. The economic environment is a two-country overlapping generations economy with no restrictions on foreign currency holdings. Governments of both countries nance their de cits via seignorage. Agents make decisions about their savings and portfolio decisions. They use t...

Gravity-based cross-sectional evidence indicates that currency unions stimulate trade as much or more than do free trade areas. Thus currencies are a source of the home-country bias in trade. This paper extends such findings to estimate the ultimate benefits of currency unions, via trade, in terms of income per capita. We use a large data set of economic and geographic variables for over 200 co...

This paper is concerned with the ability of speculation to generate a currency crisis. We consider a game-theoretic setting between a unit mass of speculators and a government that holds foreign currency reserves. We analyze conditions under which the speculators may be able to force the government to devaluate the currency. Among these conditions, we analyze the role of heterogeneous beliefs, ...