Using asset prices to explain the fluctuations of nominal exchange rate is popular for decades. A majority of papers focused on Monetary Model but failed to make a consistent conclusion. In this article, we suggest that the failure of monetary model might be coming from the basic assumption of taking different countries¡¦ assets as ¡§perfect substitutes¡¨. Under such circumstances, we introduce another model named as ¡§Portfolio Balance Model¡¨ where assets of different countries are no longer be taken as ¡§perfect substitutes¡¨ , implying that UIP( Uncoverd Interest Rate Parity)exist no more either. We do not overthrow the entire theory of Monetary Model. Instead, we expect the combination of these two models will turn something out that can be much more general, consistent, and robust. We take Canada as our domestic currency and adopt Johansen(1988) and Stock & Walson(1988) by using co-integration to test on three exchange rates relation (USD/CAD,GBP/CAD,JPY/CAD) from 1973 Q1 to 2004 Q4. It turns out that most of the coefficient are correct and passing statistical significance, such result suggest that the portfolio balance effect should not be ignored in the model.

There are four chapters in my dissertation. Chapter one gives a brief introduction of the three essays. Chapter two studies the choice of exchange rate regimes in East Asia using a business-cycle approach. My results suggest that countries in East Asia are driven mainly by country-specific shocks, making more rigid exchange rate regimes less desirable. Neither a yen bloc nor a dollar bloc has been identified in East Asia. However, Japan seems more influential to countries such as Korea and Taiwan. An optimum currency area does not seem feasible for East Asia, at least in the short run. Chapter three applies the cointegration and causality analyses to the real effective exchange rates to study the degree of monetary integration in East Asia. I find that the ASEAN and the NIE countries, respectively, have achieved some degree of integration, but not East Asia as a whole. The yen is found to move closely with the NIE currencies. However, neither the yen nor the dollar imposes a dominant driving force on the East Asian currencies. My results suggest that East Asia is not an optimum currency area. Chapter four expands the traditional monetary model of exchange rate determination into a structural VAR model incorporating various capital flows and the balance of trade in addition to the macroeconomic fundamentals. The model is then applied to the Australian dollar (AUD), the Canadian dollar (CAD), and the US dollar (USD) exchange rates over 19802004. I find that capital flows, especially portfolio investments, explain a major portion of the exchange rate fluctuations in the relatively small and open economies such as Australia and Canada in the short-to-medium run. The impacts of capital flows are limited to the US dollar exchange rates. Among the macroeconomic fundamentals, the interest rate plays an important role in exchange rate determination for all three currencies. The results imply that different capital flows do influence exchange rates differently and are important determinants of exchange rates.

Main extrinsic and intrinsic modifiers factors of crack growth rate in AA7050-T7451 were assessed in order to provide tools for aeronautical structures designers. These tools cover most necessary information to project aircraft\'s structures using the studied alloy, under damage tolerance philosophy. The experimental methodology consisted of use CT specimens, on TL and LT rolling direction to test its behavior under different conditions of stress ratio, force waveform, and the environment. The stress ratio values were 0.1 and 0.5, the force waveform used were sine and trapezoidal or Dwell under normal air laboratory conditions and salt fog 3.5%NaCl weight in order to simulate the marine environment. In Dwell tests, results were checked with the electrical potential drop technique (DCPD) in addition to the crack opening displacement (COD) method. Using the Walker coefficients, calculated on the present research, could be projected accurately the crack propagation behavior on Paris region and do fatigue life predictions using da/dN and S-N diagrams for different stress ratio values. The corrosion environment increases both crack growth rate and ΔKth due to oxides formation on the crack path that generates a crack closure effect. Dwell carrying makes decrease the crack growth rate by decreasing the slope of the Paris line on log (da/dN) versus log (ΔK) curve, instead of shifting down the line as occurs on titanium alloys. Rolling direction change from LT to TL increase the FCG rate in both threshold and Paris region, where the rate change use to be small. / Os principais fatores modificadores extrínsecos e intrínsecos da taxa de propagação de trincas na liga AA7050-T7451 foram avaliados para fornecer subsídios para projetistas de estruturas aeronáuticas, com base na filosofía de tolerância ao dano. A metodologia experimental consistiu em ensaiar corpos de prova do tipo compact tension (CT) da liga nas direções de laminação TL e LT, para verificar seu comportamento sob diferentes razões de tensões, forma de onda e condição ambiente. Os valores de razão de tensão estudados foram 0,1 e 0,5, as formas de onda foram senoidal e trapezoidal ou de Dwell, em condições normais de laboratório, ao ar, e névoa salina 3,5% NaCl, em massa, para simular um ambiente marinho. No caso dos ensaios Dwell, os resultados foram conferidos pelo método de queda de potencial eléctrico (QPE), além do método de flexibilidade elástica. Usando os coeficientes de Walker calculados a partir dos resultados obtidos, pôde-se projetar com precisão o comportamento da propagação de trinca na região de Paris e prever a vida em fadiga usando os diagramas da/dN e S-N para diferentes valores da razão de tensões. O ambiente corrosivo aumenta tanto a taxa de propagação de trinca, quanto o valor de ΔKth por causa da formação de óxidos na trajetória da trinca, que geram um efeito de fechamento sobre a mesma. Quanto à forma de onda, verificou-se que o carregamento Dwell diminui a taxa de propagação de trinca, diminuindo a inclinação das curvas log (da/dN) versus log (ΔK) na região de Paris, ao invés de deslocá-la paralelamente como ocorre com ligas de titânio. A mudança da direção de laminação de LT para TL aumenta a taxa de propagação de trinca por fadiga (PTF) tanto na região de threshold, quanto na região de Paris, onde a mudança de taxa é pequena.

Main extrinsic and intrinsic modifiers factors of crack growth rate in AA7050-T7451 were assessed in order to provide tools for aeronautical structures designers. These tools cover most necessary information to project aircraft\'s structures using the studied alloy, under damage tolerance philosophy. The experimental methodology consisted of use CT specimens, on TL and LT rolling direction to test its behavior under different conditions of stress ratio, force waveform, and the environment. The stress ratio values were 0.1 and 0.5, the force waveform used were sine and trapezoidal or Dwell under normal air laboratory conditions and salt fog 3.5%NaCl weight in order to simulate the marine environment. In Dwell tests, results were checked with the electrical potential drop technique (DCPD) in addition to the crack opening displacement (COD) method. Using the Walker coefficients, calculated on the present research, could be projected accurately the crack propagation behavior on Paris region and do fatigue life predictions using da/dN and S-N diagrams for different stress ratio values. The corrosion environment increases both crack growth rate and ΔKth due to oxides formation on the crack path that generates a crack closure effect. Dwell carrying makes decrease the crack growth rate by decreasing the slope of the Paris line on log (da/dN) versus log (ΔK) curve, instead of shifting down the line as occurs on titanium alloys. Rolling direction change from LT to TL increase the FCG rate in both threshold and Paris region, where the rate change use to be small. / Os principais fatores modificadores extrínsecos e intrínsecos da taxa de propagação de trincas na liga AA7050-T7451 foram avaliados para fornecer subsídios para projetistas de estruturas aeronáuticas, com base na filosofía de tolerância ao dano. A metodologia experimental consistiu em ensaiar corpos de prova do tipo compact tension (CT) da liga nas direções de laminação TL e LT, para verificar seu comportamento sob diferentes razões de tensões, forma de onda e condição ambiente. Os valores de razão de tensão estudados foram 0,1 e 0,5, as formas de onda foram senoidal e trapezoidal ou de Dwell, em condições normais de laboratório, ao ar, e névoa salina 3,5% NaCl, em massa, para simular um ambiente marinho. No caso dos ensaios Dwell, os resultados foram conferidos pelo método de queda de potencial eléctrico (QPE), além do método de flexibilidade elástica. Usando os coeficientes de Walker calculados a partir dos resultados obtidos, pôde-se projetar com precisão o comportamento da propagação de trinca na região de Paris e prever a vida em fadiga usando os diagramas da/dN e S-N para diferentes valores da razão de tensões. O ambiente corrosivo aumenta tanto a taxa de propagação de trinca, quanto o valor de ΔKth por causa da formação de óxidos na trajetória da trinca, que geram um efeito de fechamento sobre a mesma. Quanto à forma de onda, verificou-se que o carregamento Dwell diminui a taxa de propagação de trinca, diminuindo a inclinação das curvas log (da/dN) versus log (ΔK) na região de Paris, ao invés de deslocá-la paralelamente como ocorre com ligas de titânio. A mudança da direção de laminação de LT para TL aumenta a taxa de propagação de trinca por fadiga (PTF) tanto na região de threshold, quanto na região de Paris, onde a mudança de taxa é pequena.