Implications of a managed floating exchange rate system on the interest-rate behavior of Singapore

Singapore and Hong Kong are two similar economies, but they have rather different monetary systems and exchange-rate regimes. Singapore’s managed floating exchange rate regime contrasts with Hong Kong’s currency board system (CBS) featured by the Hong Kong–United States dollar peg. In this paper, we appraise the implications of the managed floating exchange rate regimes on the interest-rate behavior of Singapore. We examine the Singapore-US interest differential under the Singapore’s exchange-rate regimes during the Asian Financial Crisis (AFC), current Global Financial Crisis and none-crisis periods by using generalized autoregressive conditional heteroscedasticity (GARCH) model. We hope that the good performance of Singapore’s exchange rate system and interest rate system, after successfully moving away from a currency board system to a credible managed floating exchangerate regime, provides a lesson worthy of attention to Hong Kong

Quantum spatial-periodic harmonic model for daily price-limited stock markets

We investigate the behavior of stocks in daily price-limited stock markets by purposing a quantum spatial-periodic harmonic model. The stock price is presumed to oscillate and damp in a quantum spatial-periodic harmonic oscillator potential well. Complicated non-linear relations including inter-band positive correlation and intra-band negative correlation between the volatility and the trading volume of stocks are derived by considering the energy band structure of the model. The validity of price limitation is then examined and abnormal phenomena of a price-limited stock market (Shanghai Stock Exchange) of China are studied by applying our quantum model.Comment: 8 pages, 9 figure