Beggar Thy Neighbour Exchange Rate Regime Misadvice  from Misapplications of Mundell (1961) and the Remedy

Economists invoke Mundell (1961) in arguing for the general policy of   a flexible exchange rate regime as a means of restoring equilibria   after shocks. But there is a discrepancy between the intent of the   general policy and attempts at its implementation as identified by   specific changes in exchange rates.  When we assemble the set of   specific changes called for by distinct economists operating as   advocates for individual countries, these are uniformly in the form   of beggar-thy-neighbour advice – ie travesties of objectively   identifying disequilibria and a menace to international cooperation   and peace.  This paper traces the unintended travesties to problems   of complexity and uncertainty, problems that implicitly are assumed   absent in Mundell (1961) rendering the situation so simple that   equilibria are transparent.  The problems remained essentially   unaddressed when economists extended Mundell (1961) via expected   utility theory since this theory also ignores the impossibility of   maximising and the complexities of central bankers, private firms and   others in doing the evaluation stage in reaching decisions.  The   problems can be overcome by modelling within SKAT, the Stages of   Knowledge Ahead Theory.  This paper points to experimental evidence   in support of the view that under all sorts of disequilibrating   shocks, currency unions outperform flexible currencies by eliminating   the inefficiencies generated by exchange rate uncertainty.optimal currency area; exchange rate regime; certainty effects;   policy; beggar-thy-neighbour; SKAT the Stages of Knowledge Ahead Theory; complexity; equilibrium; small world; shocks; expenditure-switching shocks; supply-side shocks; demand shocks; experiment, safety, international competitiveness.

Hedging the exchange rate risk in international portfolio diversification : currency forwards versus currency options

As past research suggest, currency exposure risk is a main source of overall risk of international diversified portfolios. Thus, controlling the currency risk is an important instrument for controlling and improving investment performance of international investments. This study examines the effectiveness of controlling the currency risk for international diversified mixed asset portfolios via different hedge tools. Several hedging strategies, using currency forwards and currency options, were evaluated and compared with each other. Therefore, the stock and bond markets of the, United Kingdom, Germany, Japan, Switzerland, and the U.S, in the time period of January 1985 till December 2002, are considered. This is done form the point of view of a German investor. Due to highly skewed return distributions of options, the application of the traditional mean-variance framework for portfolio optimization is doubtful when options are considered. To account for this problem, a mean-LPM model is employed. Currency trends are also taken into account to check for the general dependence of time trends of currency movements and the relative potential gains of risk controlling strategies

Forming ideal types by understanding. Application to the psychoanalytic treatment of suicidal men

This paper discusses the application of a qualitative methodology—forming ideal types by understanding—to the psychoanalytic psychotherapy of suicidal men. The paper focuses on a particular phase of the methodology: the validation through external expert replication. Data of cases from psychoanalytic treatment, analysed by the originating group in Germany, is analysed by a group in London, UK, which formed to undertake the task of blind comparison. We describe the contribution of this method in the field of psychoanalytic research, the method developed for generating data and the processes through which data are analysed. We demonstrate the comparative findings from the first (German) and second (UK) analyses and explore the meanings of the similarities and differences. The paper concludes with an appraisal of the strengths and limitations (in terms) of moderate levels of generalisation of results from this method for research in the field of qualitative psychotherapy researc

The Importance of Protestantism in Max Weber's Theory of Secularisation

In this article, I review my recent book Protestant Modernity. Weber, Secularisation and Protestantism, which reconstructs Weber's theory of secularisation and argues that this is formulated within a liberal Protestant framework. I argue that this theory is a part of his Protestant account of modernity. I also sketch some of the major issues involved in developing a Catholic account of modernity and provide some worked through examples of the sociological implications of this change of confessional presuppositions

Share buy-backs in Germany overreaction to weak signals? : [Version April 2004]

This paper investigates the magnitude and the main determinants of share price reactions to buy-back announcements of German corporations. For our comprehensive sample of 224 announcements that took place between May 1998 and April 2003 we find average cumulative abnormal returns around -7.5% for the thirty days preceding the announcement and around +7.0 % for the ten days following the announcement. We regress post-announcement abnormal returns with multiple firm characteristics and provide evidence which supports the undervaluation signaling hypothesis but not the excess cash hypothesis or the tax-efficiency hypothesis. In extending prior empirical work, we also analyze price effects from initial statements of firms that they intend to seek shareholder approval for a buy-back plan. Observed cumulative abnormal returns on this initial date are in excess of 5% implying a total average price effect between 12% and 15% from implementing a buy-back plan. We conjecture that the German regulatory environment is the main reason why market variations to buy-back announcements are much stronger in Germany than in other countries and conclude that initial statements by managers to seek shareholders’ approval for a buy-back plan should also be subject to legal ad-hoc disclosure requirements

ECB Foreign Exchange Intervention and the Euro: Institutional Framework, News and Intervention.

Using a unique intervention "news" data set, this paper investigates the impact of ECB intervention and intervention-related "news" (newswire reports) on the euro exchange rate. A time-series study of "news" generated by ECB officials and market participants regarding intervention and the value of the euro as well as an event study of firm reports of ECB intervention is conducted. Both studies find significant short-run effects on the euro value, while only "negative" statements (official statements denying past intervention or ruling out future intervention) appear to have persistent effects.

Banks and German corporate governance : on the way to a capital market-based system?

The German corporate governance system has long been cited as the standard example of an insider-controlled and stakeholder-oriented system. We argue that despite important reforms and substantial changes of individual elements of the German corporate governance system the main characteristics of the traditional German system as a whole are still in place. However, in our opinion the changing role of the big universal banks in the governance undermines the stability of the corporate governance system in Germany. Therefore a breakdown of the traditional system leading to a control vacuum or a fundamental change to a capital market-based system could be in the offing

Information theory and the role of intermediaries in corporate governance

We investigate the connection between corporate governance system configurations and the role of intermediaries in the respective systems from a informational perspective. Building on the economics of information we show that it is meaningful to distinguish between internalisation and externalisation as two fundamentally different ways of dealing with information in corporate governance systems. This lays the groundwork for a description of two types of corporate governance systems, i.e. insider control system and outsider control system, in which we focus on the distinctive role of intermediaries in the production and use of information. It will be argued that internalisation is the prevailing mode of information processing in insider control system while externalisation dominates in outsider control system. We also discuss shortly the interrelations between the prevailing corporate governance system and types of activities or industry structures supported

FATORES QUE INFLUENCIAM O USO DE SERVIÇOS DE GOVERNO ELETRÔNICO NO BRASIL

El presente artículo tiene el objetivo de explotar los datos secundarios (micro datos) de la investigación TIC Domicilios, con la finalidad de comprender cómo el uso de servicios de gobierno electrónico es influenciado por los diferentes locales de acceso a Internet y por las competencias de uso de los usuarios brasileños de Internet. Para tanto, esta investigación se fundamentó en el abordaje de las Capacidades desarrollado por el economista Amartya Sen. Los procedimientos referentes al tratamiento y análisis de datos se basaron en la aplicación de técnicas estadísticas descriptivas (análisis de frecuencia univariado y bivariado) y multivariado (regresión logística binaria). Los resultados indican que el uso de los servicios de gobierno electrónico está fuertemente relacionado a las siguientes competencias: uso del e-mail, ecommerce (busca de productos y servicios) y servicios financieros (consultas). Tales competencias son favorecidas por el acceso a Internet en casa y en el trabajo, vías preferidas a las demás alternativas de acceso, como los locutorios / lan-houses (centros públicos de acceso gratuito) y los tele centros (centros públicos de acceso gratuito). Finalmente, el artículo discute las potenciales implicaciones de los resultados de esta investigación en el desarrollo de políticas públicas de inclusión digital.The purpose of this paper is to explore the secondary data (microdata) from Brazilian “ICT in households and enterprises Survey” in order to understand how the individuals’ use of electronic government services (e-gov) is affected by their location of access to the internet and usage competences of Brazilian internet users. To this end, this research was based on the approach of the capabilities developed by economist Amartya Sen. The procedures concerning processing and data analysis were based on the application of descriptive (univariate and bivariate analysis of frequency) and multivariate statistical techniques (binary logistic regression). The results indicate that the use of e-government services is closely related to the following skills: e-mail usage, e-commerce (search for goods and services) and financial services (consultations). Such skills are favored by Internet access at home and at work, preferred routes to other alternatives such as Internet cafes (public centers providing free access) and tele-centers (public centers with free access). Finally, the article discusses the potential implications of the results of this research in the development of public policies for digital inclusion.O presente artigo tem como objetivo explorar os dados secundários (microdados) da pesquisa TIC Domicílios, a fim de compreender como o uso de serviços de governo eletrônico é influenciado pelos diferentes locais de acesso à internet e pelas competências de uso dos internautas brasileiros. Para tanto, esta investigação fundamentou-se na abordagem das Capacidades desenvolvida pelo economista Amartya Sen. Os procedimentos referentes ao tratamento e análise de dados basearam-se na aplicação de técnicas estatísticas descritivas (análise de frequência univariada e bivariada) e multivariada (regressão logística binária). Os resultados indicam que o uso dos serviços de governo eletrônico está fortemente relacionado às seguintes competências: uso do e-mail, e-commerce (busca de produtos e serviços) e serviços financeiros (consultas). Tais competências são favorecidas pelo acesso à internet em casa e no trabalho, vias preferidas às demais alternativas de acesso, como as lan-houses (centros públicos de acesso pago) e os telecentros (centros públicos de acesso gratuito). Por fim, o artigo discute as potenciais implicações dos resultados desta investigação no desenvolvimento de políticas públicas de inclusão digital

What Makes a Muslim Intellectual? On the Pro's and Con's of a Category

<p style="margin-right: 1cm; margin-bottom: 0cm; line-height: 100%;" lang="en-GB">At its core, this essay contains a substantiated plea for bringing about conceptual clarity to the notion of “Muslim intellectual”, which the frequent and highly ideologically charged public usage of this term seems to distort. In search for a sound analytical concept of “intellectual” first, relevant sociological and philosophical deliberations are highlighted, indicating that both of their notions differ to such an extent that their applicability to academic pursuit must be doubted. Yet, by discussing some considerations by a Study of Islam open to the approaches of the Social Sciences a possible framework for an analytically meaningful concept of “Muslim intellectual” is presented. At the same time, however, arguments are presented for why those contemporary Muslim thinkers who are usually credited with being “Muslim intellectuals” would hardly fit the analytical criteria for such label.</p