The Internet and other telecommunications systems have reshaped the means by which markets are accessed, generated, and transformed. Recent innovations in computer science have led to the development of a virtually bound, decentralized, encrypted currency system known as bitcoin. Unlike conventional currency systems, the Bitcoin protocol is cryptologically defined with a virtual structure that allows it to simultaneously operate as currency, commodity, and market shaping socio-political force. Its decentralized design permits it to function as a free-market response to fiat currencies vulnerable to inflation, regulation, and manipulation. Given the cultural significance anthropologists and other social scientists have assigned to various modes and mediums of exchange over the years, the socio-economic impact of this novel currency system warrants particular consideration. This research describes the Bitcoin community that has emerged alongside the currency, including the entrepreneurs, developers, and consumers who are dedicated to bitcoin’s perpetuation and acceptance as an internationally recognized medium of exchange. Ethnographic interviews and participant observation were utilized to collect information from users in the Central Florida area, detailing their experiences and interactions with the Bitcoin protocol and its associated community. This research provides new levels of anthropological insight into currency development, market interaction, and economically embodied social commentary. Moreover, its exploratory nature helps create a viable framework around which qualitative inquiry of virtual crypto-currencies may be designed in future studies.

Thesis advisor: Pablo Guerron-Quintana / The dissertation consists of three independent chapters that study nonlinear effects in international finance and macroeconomics. The implications of presence of nonlinear effects are examined both in the context of a puzzle in international financial markets, a constrained policy within a closed economy, and are also ap- proached as a general problem in macro and macroeconometric modeling. I quantify the role of nonlinear effects in these contexts, and make a case for the application of nonlinear modeling techniques.The first chapter of the dissertation titled “Sovereign Default Risk and Currency Returns” is solo-authored. Many currencies exhibit non-zero average returns with respect to US dollar, in an apparent violation of textbook uncovered and covered interest parities. I first show that in the cross-section of countries foreign currency returns are positively related to the sovereign default risk, and then reconcile this finding with the standard theory via the “peso problem”. Market players collect premium for bearing the risk of sharp devaluation in case of default. Since defaults are rare in the data, default premium manifests itself in higher currency returns. To formalize the link between default risk and currency returns, I discipline quantitatively a model “with default” based on Arellano (2008) for a set of developing countries. I then use the implications of this model to construct an econometric model for cross-section of currency returns that I estimate using extended Fama and MacBeth (1973) method. I find strong evidence supporting the “peso problem” explanation: credit default swaps’ spreads serving as proxy for the risk of default explain around 25% of the cross-country variation of average currency returns. I also estimate that the market participants expect a 50% depreciation of national currency upon default. The second chapter is titled “Nonlinear Dynamic Factor Model in Application to Financial and Macroeconomic data”, and is joint work with Pablo Guerron- Quintana and Molin Zhong. Through the lens of a nonlinear dynamic factor model, we study the role of exogenous shocks and internal propagation forces in driving the fluctuations of macroeconomic and financial data. The proposed model 1) allows for nonlinear dynamics in the state and measurement equations; 2) can generate asymmetric, state-dependent, and size-dependent responses of observables to shocks; 3) and can produce time-varying volatility and asymmetric tail risks in predictive distributions. We find evidence in favor of the nonlinear factor model over its linear counterpart in applications that include interest rates with zero lower bounds, credit default swap spreads for European countries, and nonfinancial cor- porate credit default swap spreads in the U.S. We extract a shadow interest rate comparable to those in the literature. The results hint to an important role for a nonlinear internal propagation element to exogenous shocks during periods of tur- bulence such as the European debt crisis and the Great Recession. This nonlinear term allows the model to forecast better during the early stages of the Covid-19 crisis. The third chapter is titled “Local Government spending and business cycle” and is based on a solo-authored paper. Local government revenues and spending in the United States are procyclical due to constitutional constraints of states and municipalities. As a result, the local government policies can act as amplifiers of the business cycle. This paper introduces fiscal policy conducted by local governments to an otherwise standard New Keynesian closed economy model to assess quantitatively the contribution of spending policies into the business cycle. The procyclical nature of local government spending generates an amplification mechanism that accounts for around 15% of fluctuations in output and hours worked. / Thesis (PhD) — Boston College, 2022. / Submitted to: Boston College. Graduate School of Arts and Sciences. / Discipline: Economics.

Yes / Although the eurozone sovereign debt crisis took many by surprise following the Global Financial Crisis induced Great Recession, this chapter argues that this was an accident waiting to happen with unjustified emphasis placed upon unproven rules and institutions derived from contemporary neoliberal macroeconomic thinking. First, recent developments in macroeconomic are discussed and evaluated in terms of the so-called New Consensus Macroeconomics (NCM) that forms the current mainstream macroeconomic model comprising a blend of New Classical and New Keynesian theories is through adopting the rational behaviour hypothesis and supply-side-determined long-term equilibrium of output. A particular feature of these ideas is the inclusion of rules and institutions that are perceived to result in time consistent policymaking through essentially binding politicians from undertaking in non-optimal behaviour for either opportunistic, partisan or non-rational expectations reasons. Second, in addition to the general backdrop of macroeconomics the chapter considers the notion of a monetary union between countries under the rubric of both exogenous and endogenous Optimum Currency Area (OCA) theory. This combination of theoretical propositions form the bedrock of the eurozone where the TEU convergence criteria and SGP form the rules, while the European Central Bank is the key institution tasked with delivering low and stable price inflation. However, although these notions have become the staple diet of a generation of mainstream economists they comprehensively failed to insulate the eurozone from its sovereign debt crisis.

Monetarinė politika – tai valstybės naudojamų priemonių rinkinys, kuriuo siekiama reguliuoti tam tikrus ekonomikos procesus. Efektyviai ir tinkamai vykdant monetarinę politiką valstybėje galima uţtikrinti: stabilias kainas, stabilią ir stiprią nacionalinę valiutą, didelį ekonomikos uţimtumą ir apskirtai visos ekonomikos aktyvumą. Kitaip sakant, sutrikusi, sunkiai besivystanti ekonomika tik patvirtina faktą, kad ją kontroliuojanti politika nėra efektyvi. Kaip tik tokia situacija Lietuvoje, kadangi po 2008 metais įvykusios pasaulinės finansų krizės Lietuvos ekonomika atsigauna, tačiau labai lėtai ir sunkiai. Šiuo metu labai daţnai galima išgirsti kaltinant monetarinę politiką aplaidumu, trumparegiškumu ir apskirtai neefektyvumu. Vis daugiau specialistų, analitikų ir kitų asmenų pasisako prieš Lietuvoje naudojamą valiutų valdybą. Šiuo darbu siekiama įvertinti, kuris monetarinės politikos modelis yra efektyvesnis ir tinkamesnis Lietuvos ekonomikos reguliavimui. Šio tikslo pasiekimas įmanomas - tik įvertinus Lietuvos monetarinės politikos bei ekonomikos raidą ir esamą situaciją, išanalizavus ir identifikavus teorinius modelių skirtumus bei panašumus ir atlikus monetarinių modelių palyginimą-vertinimą remiantis statistiniais duomenimis. Šio tyrimo metu atlikta vertikali ir horizontali palyginamoji analizė, kurios metu buvo lyginami įvairūs monetariniai modeliai, ekonomikos indikatoriai bei skaičiuojami įvairūs matematiniai ir statistiniai įverčiai. Tyrimo metu paaiškėjo, kad... [toliau žr. visą tekstą] / Monetary policy is the set of instruments used by a state, in order to regulate certain economic processes. With effective and suitable execution of monetary policy in a state it is possible to ensure: stable prices, stable and strong national currency, high economic employment and activity of the whole economics in general. In other words, disturbed, hardly developing economics just confirms the fact that the policy, which controls it, is not effective. Such a situation is present in Lithuania, as after the world financial crisis in 2008 the economics of Lithuania has been recovering, however, very slowly and difficult. At the moment it is quite common to hear ones blaming monetary policy for negligence, nearsightedness and inefficiency in general. More and more specialists, analysts and other persons mind the currency board arrangement, used in Lithuania. This paper seeks to identify, which model of monetary policy is more effective and suitable for regulation of the economics of Lithuania. This goal may be achieved only after evaluating the development and present situation of monetary policy and economics of Lithuania, after analyzing and identifying theoretical differences and similarities of models, and after making a comparison- evaluation of models, according to statistical data. Vertical and horizontal comparative analysis was carried out during this research, where various monetary models, economics‟ indicators were compared, and various mathematical and statistical... [to full text]

Local communities encounter various problems related to the global economic system. Socio-economic challenges arise in these communities due to the disappearance of jobs and the leakage of money, this results in a diminishing of social resilience which in turn means that these communities are hampered in their move towards strategic sustainable development. According to scientific literature, a local currency could be an instrument to overcome this diminishing of social resilience. However, the role of these currencies in strategic sustainable development remains unclear. This study aims to bridge this gap in scientific knowledge. In order to do so, three different case studies of local currencies were conducted by means of semi-structured interviews. This data was compared with the theory on local currencies and assessed through the lens of the Framework for Strategic Sustainable Development. Using this specific framework allows for a unique systems perspective on sustainable development. It becomes clear that local currencies raise awareness around sustainability challenges and incentivise social interactions; however this remains a marginal contribution towards strategic sustainable development. This research leads to the recommendation to explore enhancements to local currencies in order to address these sustainability challenges more adequately.

Many regions of the world would like to replicate the financial and monetary integration of the European Monetary Union (EMU). Member countries of the Association of Southeast Asian Nations (ASEAN) have shown an interest in such an arrangement. ASEAN is a political, cultural, and economic association that includes Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam. Many of these nations are experiencing rapid economic development while others are still relatively poor and under developed. As such, they appear to be an unlikely group for currency unification. Older studies suggest that multiple currency union groupings may be possible in the short run that could be unified into a whole at an unspecified time in the future. The issue has been studied for some time and appeared defunct with the onset of the Asian Financial Crisis. More than a decade has passed and another more global financial crisis has ensued leaving many Asian countries in better shape than their highly developed trading partners in the west. This leads to the need for further examination of the possible unification of some or all ASEAN members into a Regional Currency Arrangement. This dissertation evaluates the readiness of the ASEAN nations for monetary union using data from the post Asian Financial Crisis period. Results of a formal G-PPP test show the area is an optimum currency area. Analysis of other criteria shows incredible diversity across the countries in the region that would make unification a challenge. Coordination of monetary policy would be most difficult given the variety of inflation rates and differences in depth of financial system development as explored in chapter 2. Trade has increased in the region leading to better linkages among economies but the data shows that reaching full integration of all countries by the 2020 deadline without disruptions in some economies may still be difficult.

by Kam-Hon Chu. / Thesis (M.Ph.)--Chinese University of Hong Kong, 1987. / Bibliography: leaves 152-158.

by Yan Yuk Fung. / Thesis (M.B.A.)--Chinese University of Hong Kong, 1996. / Includes bibliographical references (leaves 41-42). / ABSTRACT --- p.i / TABLE OF CONTENTS --- p.ii / LIST OF ILLUSTRATIONS --- p.iv / ACKNOWLEDGMENT --- p.v / Chapter / Chapter I. --- INTRODUCTION AND METHODOLOGY --- p.1 / Chapter II. --- BENEFITS AND TYPES OF CONVERTIBILITY --- p.3 / Economic Benefits --- p.3 / Current Account Convertibility --- p.4 / Capital Account Convertibility --- p.5 / Chapter III. --- TRENDS OF BALANCE OF PAYMENTS IN CHINA --- p.7 / Characterics --- p.7 / Trend of Current Account Balance --- p.8 / Trend of Capital Account Balance --- p.9 / Cyclical Nature of Balance of Payments --- p.10 / Chapter IV. --- EVOLUTION OF FOREIGN EXCHANGE REGIME SINCE 1978 --- p.12 / Trade Liberalization --- p.12 / Control on Current Account Transactions --- p.13 / Foreign Exchange Retention System and Swap Centres --- p.14 / Chapter V. --- DEVELOPMENT OF CONVERTIBILITY IN 1994 --- p.16 / Achieved Convertibility on Trade Related Transactions --- p.16 / China's Choice of A Managed Floating Rate Regime --- p.18 / Chapter VI. --- CONDITIONS FOR CONVERTIBILITY --- p.21 / Stable Domestic Price --- p.21 / Favourable Balance of Payment --- p.22 / Sufficient Foreign Reserve --- p.23 / Exchange Rate Stability --- p.24 / Liberalization Measures on Service Transactions Implemented in 1996 --- p.24 / Chapter VII. --- RISKS OF CONVERTIBILITY --- p.26 / Peso Depreciation in Mexico --- p.26 / Export Slowing Down in China --- p.27 / Cumulative Inflation --- p.28 / Budget Deficit --- p.29 / Risk of Import Surging with China Entering WTO --- p.30 / Foreign Direct Investment Slowing Down --- p.30 / Political Risks within China and Across the Formosa Strait --- p.31 / Chapter VIII. --- POLICY PRESCRIPTIONS --- p.33 / Maintain Balance of Payments --- p.33 / Fiscal & Monetary Discipline --- p.34 / Improve Efficiency of Foreign Exchange Market --- p.35 / Strengthen Economic and Financial Reforms --- p.35 / Avoid Premature Capital Account Convertibility --- p.36 / Chapter IX. --- CONCLUSION --- p.38 / RMB Full Current Account Convertibility Achievable Before 2000 --- p.38 / Business Implications --- p.39 / BIBLIOGRAPHY --- p.41

The Salt Spring dollar is a community currency founded Salt Spring Island, a Gulf Islands community located in the Salish Sea between Victoria and Vancouver, British Columbia. Currency use in 2018, nearly two decades after its release in 2001, has declined but remains a means of devising alternatives to the dis-embedded market and environmental degradation, as well as a way of re-embedding social concerns and relations in the exchange of money. This thesis is a case study of this alternative currency and examines how it compares to other alternative currencies. It also examines the reasons the use of the Salt Spring dollar has declined since its inception. The Salt Spring dollar illustrates that monetary exchange and participation in the market is not merely an economic act but is also social and political. While the currency was designed with the purpose of promoting local production and exchange, it also was designed to ground money in community and social relations. / Graduate

Purpose: The purpose of the thesis is to describe which foreign exchange risk techniques that are used by medium- and large-sized Swedish companies within the Jönköping region, and how they as well as a bank evaluate the techniques in the current recession. Background: The reason why companies decide to expand their operations abroad is to take advantage from imperfections in other national markets. The fluctuations in currencies and exchange rates can have a huge effect on a company’s cash flows when doing business abroad. Therefore, when companies manage their foreign exchange risk, they have to be familiar with all the methods and tools available in order to pick the ones that best suit their needs. Method: We sent out a questionnaire and got it answered by eight companies within the Jönköping region regarding their strategy when managing foreign exchange risk. We have also interviewed a financial adviser, working at Handelsbanken, regarding the techniques offered to companies. A “foreign currency table” located in Linköping, was also contacted. They are in charge of creating recommendations and products sold by Handelsbanken. Conclusion: Hedging is the most frequently used tool by the companies in our study. Leading and lagging strategies are used quite often, while swaps and invoice currency is used less frequently by them. Exposure netting and cash pooling does not seem to be used at all. We believe that companies generally should seek more information on new techniques introduced in the market and be open to new possibilities and solutions for managing currency risk. Most of the companies in our sample, according to us, are too comfortable in their choice of techniques. / Syfte: Syftet med denna uppsats är att beskriva vilka valutarisk tekniker som används av medelstora och stora företag inom Jönköpings området, samt hur dessa företag och en bank utvärderar teknikerna i den rådande lågkonjunkturen. Bakgrund: Anledningen till varför företag väljer att expandera utomlands är för att ta nytta av fördelar som uppstår i andra marknader. Fluktuationer i valutor och valutakurser kan ha stor effekt på företagens kassaflöden när handel utomlands utförs. När företag hanterar sin valutarisk måste de vara familjära med de olika metoder som finns tillgängliga, för att få reda på vilka av dessa som bäst tillgodoser deras behov. Metod: Åtta företag inom Jönköpings regionen, svarade på ett formulär, angående deras strategi när det kommer till hantering av valutarisk. Vi har även intervjuat en företags rådgivare på Handelsbanken, angående teknikerna som de erbjuder företagen. Valutabordet i Linköping har också blivit kontaktat. De har till uppgift att ta fram rekommendationer och produkter som säljs av Handelsbanken. Slutsats: Hedging är den teknik som används mest av företagen i vår undersökning. Leading och lagging används rätt så ofta, medan swaps och invoice currency används mer sällan av dem. Exposure netting och cash pooling tycks inte användas alls. Vi anser att företag generellt ska eftersöka mer information om nya tekniker som introduceras på marknaden samt vara öppna för nya möjligheter och lösningar till att hantera valutarisk. De flesta av de undersökta företagen anser vi i dagsläget är för bekväma i sina val av tekniker.