The CFA consists several African economies adhering to one of two common currencies, and one of two central banks. The rules of the monetary union provide for the pooling of foreign assets, and the regulation of monetary expansion in each country. The French treasury guarantees the convertibility of CFA Francs into French Francs at a fixed rate. The thesis examines the impact of CFA membership on the macroeconomic performance of member states, assessing the claim that CFA institutions have influenced capital and labour markets, and have modified short run adjustment to external shocks. There are a number of reasons why CFA membership could facilitate higher investment, (i) The rules governing money creation may lead to greater monetary prudence, and so lower inflation and price variability, and less uncertainty for investors, (ii) Guaranteed convertibility means that firms will never be prevented from importing capital goods by a lack of foreign exchange, (iii) Convertibility may encourage a greater degree of integration between French and CFA capital markets, so that domestic investment is not entirely dependant on domestic saving. A model of investment is constructed to incorporate these effects, and tested using time series and cross-sectional data. Support is found for (i) and (ii), but not for (iii). If African labour markets are characterised by nominal wage inertia, the enforced low inflation may lead to excessive real wages, and CFA membership may impair efficient allocation of labour. However, evidence suggests this characterisation is usually inappropriate. The pegged exchange rate may lead to persistent external imbalances: devaluation is not an option in response to a negative trade shock. This will not be a problem as long as an effective substitute for devaluation is found. A CGE model is constructed to examine the viability of various devaluation substitutes, none of which are found to be adequate.

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Most theoretical and empirical literatures have investigated the credit channel of monetary transmission in a closed economy. However, when Taiwan becomes financially more internationalized, little literature can provide economic implication for the credit-channel effect of a monetary policy to the case of Taiwan. Therefore we set up a model with the credit market under an open economy to study the credit channel-effect of monetary policy with the inclusion of foreign assets and debts in the bank’s balance sheet. The main conclusion in our theoretical model is that the effect of a tight monetary policy on bank loans will be reduced in an open economy; furthermore, such effect may make bank loans increase after a contractionary monetary policy. Besides, the empirical evidence also shows that bank loans increase after a contractionary monetary policy with the data of Taiwan.

This dissertation discusses Japanese capital market deregulation for 1980:12-1996:12, which began gradually with the capital procurement of the most multinationalized firms and differentiated them from the pure domestic firms. We try to quantify what actually happened in the Tokyo Stock Exchange during the period to see whether the policy design could have contributed to the problems of non-performing loans and monetary policy ineffectiveness in the 1990s. We first outline the process of deregulation by a literature review. Then, the dissertation compares the statistical properties of monthly share returns for the internationalized corporations with the rest. We detected that the portfolios of internationalized and domestic firms appear to have unequal data generating processes, and possibly different structural break points, around 1984 and 1990, in their relationship with the global market. Next, we use the mild segmentation model (Errunza and Losq March 1985) to analyze the process of internationalization for the two types of firms. Our estimation suggests the internationalized share appraisal priced not only the world factor but also domestic influence more heavily than the pure domestic stocks, which leads us to reject the hypothesis for our data. We suspect the result may be attributable to the deregulation without an introduction of new valuation rules. The research concludes with an analysis of the changing function of the call rates as a traditional Japanese monetary policy tool, using the intertemporal capital asset pricing model (Merton 1973). The estimation results report that the pricing of internationalized firms could allocate no importance to the conventional domestic monetary policy instrument. Moreover, the pure domestic shares stopped reacting to the call rate in the 1990s, which implies the traditional monetary policy lost influence over asset pricing in its totality for the 1990s. Derived from these findings we conclude capital market liberalization / deregulation as an attempt to control the globalization of firms could generate unexpected reactions in the domestic market. Our estimation advises that liberalization ought to consciously reorganize the domestic capital market regulation, and the monetary authority should be flexible enough to find a way to interact with the domestic market valuations during deregulation. / Thesis (Ph. D.)--University of Hawaii at Manoa, 2003. / Mode of access: World Wide Web. / Includes bibliographical references (leaves 219-236). / Electronic reproduction. / Also available by subscription via World Wide Web / xiv, 236 leaves, bound ill. 29 cm

Typescript. / Bibliography: leaves 307-335. / Photocopy. / Microfilm. / x, 335 leaves, bound ill. 29 cm

Mode of access: World Wide Web. / Thesis (Ph. D.)--University of Hawaii at Manoa, 2004. / Includes bibliographical references (leaves 149-151). / Electronic reproduction. / Also available by subscription via World Wide Web / xi, 158 leaves, bound ill. 29 cm

Thesis (M.Com. (Economic & Economic History)) - Rhodes University, 2007. / Thesis in partial fulfilment of the requirements for the degree Master of Commerce, Financial Markets in Department of Economics and Economic History.

Thesis (Ph. D.)--State University of New York at Binghamton, Department of Economics, 2007. / Includes bibliographical references.

Thesis (M.S.)--University of Delaware, 2007. / Principal faculty advisor: James L. Butkiewicz, Dept. of Economics. Includes bibliographical references.