Linkages Among Asset Markets in the United States

This paper develops a bivariate GARCH model that allows for time-varying conditional correlations and simultaneous testing of two Granger-causal linkages: the impact of return volatility in a market on intermarket correlation and the impact of return volatility in one market on the volatility of another. Using daily data from stock, bond, currency, and commodity markets in the United States, the paper finds evidence of each form of linkage. Furthermore, the conditional correlations change over time and exhibit considerable persistence. The estimated time-varying conditional correlations provide insight into the nature of the stock market crash of 1987.

Banking Supervision

This paper examines the relationship between the quality of banking supervision and governance of the supervisory agency, based on assessments of the Basel Core Principles and the IMF Code on Transparency in Financial Policies, covering 116 and 53 countries, respectively, with 51 common to both. We find a positive correlation between the transparency of the supervisor and the effectiveness of banking supervision; moreover, better accountability and integrity practices of the banking supervisors are associated with higher independence, which in turn is associated with better compliance with the Basel Core Principles. These results are largely robust to different stages of financial development.Bank supervision;Governance;Basel Core Principles;banking supervision, banking, banking supervisors, banking sector, bank supervisors, payment systems, banking business, transparency requirements, deposit insurance, bank regulation, consolidated supervision, prudential supervision, supervisory agencies, licensing process, money laundering, banking supervisor, supervisory authorities, bank independence, supervisory agency, bank for international settlements, securities regulation, debt restructuring, bank licenses, financial sector supervisors, market participants, financial regulation, central banking, bank corruption, banking system, monetary policies, information exchange, financial system integrity, supervisory environment, licensing authority, assessment missions, enforcement powers, bank policy, bank group

Sequencing Capital Account Liberalization

This paper examines issues in sequencing and pacing capital account liberalization and draws lessons from experience in four countries (Chile, Indonesia, Korea, and Thailand). The paper focuses on the interrelationship between capital account liberalization, domestic financial sector reforms, and the design of monetary and exchange rate policy. It concludes that capital account liberalization should be approached as an integrated part of comprehensive reform strategies and should be paced with the implementation of appropriate macroeconomic and exchange rate policies.

Effect of cavity preparation on the flexural strengths of acrylic resin repairs

OBJECTIVE: To investigate the effect of cavity preparation on the flexural strength of heat-curing denture resin when repaired with an auto-curing resin. MATERIAL AND METHODS: Ninety-six rectangular specimens (64x10x2.5 mm) prepared from heat-curing denture base resin (Meliodent) were randomly divided into four groups before repair. One group was left intact as control. Each repair specimen was sectioned into two; one group was repaired using the conventional repair method (Group 1). Two groups had an additional transverse cavity (2x3.5x21.5 mm) prepared prior to the repair; one repaired with (Group 2) and one without glass-fiber reinforcement (Group 3). A three-point flexural bending test according to the ISO 1567:1999 specification8 for denture base polymers was carried out on all groups after 1, 7 and 30 days of water immersion. Statistical analysis was carried out using two-way ANOVA, Kruskal Wallis and post-hoc Mann Whitney tests. RESULTS: The highest flexural strength was observed in the control group. Control and conventional repairs group (Group 1) showed reduction in the flexural strength 30 days after water immersion. No significant change in the strength was observed for Groups 2 and 3 where the repair joints were similarly prepared with additional transverse cavity. CONCLUSION: Repaired specimens showed lower flexural strength values than intact heat-curing resin. Cavity preparation had no significant effect on the flexural strength of repair with water immersion