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This study is to examine the three theme of the eπiciency of Korea foreign exchange market including the unbiasedness testing, the relative efficiency estimates, and the information spillover efficiency. Data using the analysis 81’e won-dollar spot and futures in domestic and won-dollar forward in offshore. i.e.. New York and Singapore NDF (non-delivery forward).

The empirical results are summarized as follows: First. the efficient market or unbiasedness expectations hypothesis is not rejected in the won-dollar currency futures market apart from offshore New York and Singapore NDF markets. This indicates that the won-dollar futures price is likely to be an accurate indicator of future won-dollar spot prices without the trader having to pay a risk premium for the privilege of trading the contract. Second. the findings suggest the domestic won-dollar futures market is 13.58% efficient. the Singapore offshore won-dollar NDF market is 11.38% efficient. and the New York offshore won-dollar NDF market is 2.68% efficient. This indicates that the domestic won-dollar futures market is more efficient than the offshore won-dollar NDF market. It is therefore possible to conclude that the domestic currency futures price is a relatively successful predictor of the future spot price. Third. the findings suggest the information spillover exists between domestic won-dollar spot/futures market and offshore won-dollar New York NDF market in both direction. This indicates that the two markets are efficiently linked.

We analyze the dynamic behavior of the volatility of KTB futures price through GARCH models. In conducting this analysis we use two type data. Using dailly data we analyze the return and volatility spill-over effect between KTB spot and futures. Through 15-minute and 5-minute data we analyze return and volatility spill-over effect between KTB futures and won/dollar futures. We find that ARCH and GARCH effect exists in the volatility of KTB futures, but leverage effect does not exist in this data. Volatility spill-over effect was found only in 15-minute data. Lead and lag effect was found in 15-minute data of dollar and KTB futures where dollar return leads KTB futures and KTB volatility leads dollar volatility. In the daily data we found that KTB futures return lead KTB spot return while mutual spill-over existed between spot and futures in volatility data. Since conditional heteroscedasticity exists in KTB futures we need to consider the these effects in building up systems for arbitrage, valuation and risk management.

The theory of discounting is based on the assumption that people's observed behavior in markets for savings and investment reveals their subjective preferences regarding trade-offs between present and future economic benefits. A person who borrows money at the annual interest rate r, for example, shows a willingness to pay (1+r)t dollars t years in the future to obtain one dollar in the present. On the other side of this transaction, the lender demands (1+r)t future dollars in exchange for each dollar loaned out today. In the logic of this situation, both borrowers and lenders behave as if one dollar of future currency has a “present value” of just

Since the 1970s, many global political economists have been seeing the US as a declining hegemon. After four decades into this hegemonic decline, performance of economies having been regarded as candidates for new hegemons such as Germany/Europe and Japan fell far short of these expectations, while US share of the global economy and its military supremacy remained stable. This staying power of the US stems from the “dollar standard,” under which the US dollar is the dominant foreign reserve currency and international transaction medium in the world economy. The dollar standard originated in the Cold War era when all major capitalist powers relied on the US for military protection. It persisted after the end of Cold War, thanks to the continuous mutual reinforcement of the dollar standard and the global domination of the US military. The recent rise of China, which is the first major capitalist power outside the orbit of US military protection, poses a serious dilemma to the US. On the one hand, China’s export-oriented development drives China to purchase US Treasuries on a massive scale, hence lending support to the short-term viability of the dollar. On the other hand, US’s skyrocketing current account deficit, much attributable to China, precipitates a crisis of confidence over the dollar’s long-term prospects. China is likewise caught in a dilemma between sustaining its export-driven growth and shifting to a domestic-consumption-driven economy. The development of the US–China currency conflict, together with the transformation of the Chinese developmental model, will be the most important determinant shaping the future of the dollar standard and US global power in the years to come.

This paper tries to empirically investigate whether the information contained in trading volume, volume volatility of Won/Dollar currency futures may be statistically useful in forecasting currency spot return. This paper uses both the jump-diffusion GARCH model and the bivariate GARCH type BEKK model to estimate the trading volume volatility of currency futures and the volatility of currency spot, sampled daily during 1/4/2000~12/30/2009 period. According to the findings of this study, previous information contained in both trading volume and the volume volatility of Won/Dollar currency futures might be useful in explaining the future return of the currency spot.

This chapter addresses the general process of determining the value of a particular company, with additional detail on how valuation processes might be adapted to produce credible value conclusions of emerging technology ventures. There are three primary approaches to business valuation. There is the income approach, which indicates that value is a product of expected future cash flows – cash flows that are discounted to equate them to dollars in-hand (present value). There is the market approach, which attempts to draw conclusions of value based on the market prices of similar companies in the public and/or private markets. Finally, there is the asset approach, which indicates that the value of a company is equal to the sum of the values of its net assets. Specific adjustments are appropriate with respect to each of these approaches where the value of an emerging technology company is concerned. Professional valuation standards require that all of these approaches be considered in the valuation, even if the available information does not permit their credible application. Often, multiple approaches and techniques can be applied. The results of applying multiple techniques often do not overlap, and it is the analyst’s very important task to reconcile differing valuation results, or to decide which result or results should be discarded.

KRX (Korea Exchange) gold market opened in March 2014 according to the government policy legalizing financial transactions, and traded one-gram unit of the real gold by Korean currency (KRW) in the exchange market. Despite the fact that KRX gold market showed the high efficiency in terms of tax and fee in contrast to the existing gold market, the studies on KRX gold market were scarcely performed until quite recently. This study introduce KRX gold market and shows the price discovery function of KRX gold market. Empirical analyses and the results were as follows. First, the return rate of CME gold futures at the t-1 day had a positive impact of significance on market rate of return of KRX gold market at the t day. Second, the KRX gold market also has price discovery function in global gold market. We analyze the efficiency of the KRX gold market by comparing the dollar spot price of gold in the KRX gold market and the price of CME gold futures. These results support the proper efficiency of the KRX gold market in terms of price discovery.

Government agencies have endeavored, with limited success, to improve the methodological consistency of regulatory benefit–cost analysis (BCA). This paper recommends that an independent cohort of economists, policy analysts and legal scholars take on that task. Independently established “best practices” would have four positive effects: (1) they would render BCAs more regular in form and format and, thus, more readily assessable and replicable by social scientists; (2) improved consistency might marginally reduce political opposition to BCA as a policy tool; (3) politically-motivated, inter-agency methodological disputes might be avoided; and (4) an independent set of “best practices” would provide a sound, independent basis for judicial review of agency BCAs.

Recent research in mainstream economics, before as well as since the 2008 crisis, has stressed the importance of growing current account imbalances among countries, particularly the imbalances between the United States and some Asian countries. While some have seen in these imbalances proof of the efficient work done by liberalized financial markets, as well as a sign of the great dynamism of the US economy, others have warned about the possible threats to the global economic stability arising from potential speculation against the dollar. These latter writers see the international imbalances as a contemporary version of the Triffin Dilemma. In this paper, we argue that both views are mistaken because they both focus on net capital flows. Recent research suggests, on the contrary, the importance of international gross capital flows related to financial liberalization. However, our argument goes further in order to demonstrate that the analysis of the consequences of international gross capital flows were already at the core of the Triffin dilemma, as well as in wider debates about the inherent instability of the international monetary power of individual countries, before and after World War II.