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Emerging markets are said to have sustained relatively well in the recent global crisis. There are several factors that help explain this popular view, such as, for example, perceived separation from key international financial centres. Still a lot is to be digested in the crisis aftermath with immediate implications for financial markets and real economy. This chapter offers a unique insight into dynamics within transition economies via an extended blended fiscal–monetary policy rules model with possibility of foreign reserves targeting and foreign currency-denominated debt dynamics. Calibration is based on actual data and is done under various targets and financial risk conditions. Prudent monetary policy and fiscal policy initiatives within current context drive the choice of targets. That may help dampen negative impacts of the crisis and thwart potential currency run. This chapter advances three possible post-crisis scenarios, each with unique solution for reserves, exchange rate, sustainable debt and output levels. Categorizing between net exporters and net importers based on countries' external positions, group-specific results are derived. While both groups are susceptible to exchange-rate risk affected by a multitude of shocks due to their fragile financial system, net importers risk high inflation, but net exporters over-borrowing. This chapter contributes to the literature on global financial crisis, macroeconomic policy, and role of nominal targets and foreign reserves in emerging markets.

This paper focuses on Taiwanese‐funded manufacturing companies operating in mainland China to analyze the factors affecting funding decision‐making before and after initial public offering (IPO).

This research investigates the impact and usefulness of various paths in the data system by using the structural equation modeling (SEM) to examine how the overall economy aspect and the basic aspect before IPO affect the initial returns (IRs) during the IPO and the debt ratio (DR) volatility after listing.

The results show that the IR, percent change of stock index, and exchange rate volatility before IPO are negative associated with the DR after IPO. The age of IPO companies is positive associated with the DR after IPO. This research also finds that the interest rate volatility before and after IPO have no direct effect upon companies' financial strategies after IPO, but may indirectly affect companies' financial strategies after IPO through the IRs, which conform with the market information feedback hypothesis proposed by van Bommel and Vermaelen.

This paper investigates Taiwanese‐funded traditional manufacturing companies in mainland China. The paper obtains the sample from the Taiwan Stock Exchange from 1990 to 2005; electronic companies and samples lacking complete data are eliminated. Finally, the sample consists of 122 companies from traditional manufacturing sectors. The results may be applied to companies not from high‐tech sectors and emerging markets only. The incentive of debt financing would be lower for IPO companies with high IRs, percentage changes of stock index, and exchange rate fluctuation before listing. The paper suggests further research can investigate IRs for establishing an optimal capital structure to minimize financing costs and appreciate company value when choosing financing strategies. The new pubic companies will infer the IR and future capital structure through market interest before listing. It suggests future research may be directed at companies from financial and high‐tech sectors, and may apply the methodologies to developed economies.

It is suggested that IPO companies may closely examine to determine the performance of stock market, tendencies of exchange rate movement, as well as IRs in order to establish an optimal capital structure to minimize financing costs and appreciate company value. Besides, the new pubic companies will infer the IR and future capital structure through market interests before listing.

This research implicated that IPO companies should fully understand the stock market circumstance and exchange rate volatility tendencies. Then, the new pubic offering companies will be able to infer the IR and future capital structure through market interest to judge relative financing costs of manufacturing companies.

The purpose of this paper is to analyze the “following” behavior of six currencies in East Asia to RMB before and after the “financial crisis”.

Using foreign exchange spot rate data from 2005 to 2013, the authors investigate the dynamic relationship of RMB and six East Asia currencies with method of DCC-GARCH and quantile regression.

The authors get such conclusions: first, most currencies indeed “follow” RMB in whole sample period but the correlation is “time-varying”; second, the degree of co-movement increased as a whole, which reflects that the influence of China in East Asia rose continuously; third, the East Asian currencies behaved differently before the crisis, but reveal some similarities after the crisis, and prefer to “follow” when RMB depreciates and reluctant to follow when RMB appreciates at a comparatively large degree. The authors argue that it may be related to the different macroeconomic environment faced by East Asia region before and after the crisis, the rising economic influence of China and the development of RMB internationalization’s practice.

The effort could strength the understanding to the “following” behavior of East Asia currencies to RMB, the authors also point out that RMB has been as regional currency anchor, but the role of anchor is unstable, and is affected by international economic circumstance, China should adapt some methods to strength RMB’s influence to East Asia currency.

The purpose of this paper is to explore the period of uncertainty created by the referendum. The focus is the UK real effective exchange rate (REER). The authors set out to measure the additional impact of the uncertainty surrounding the referendum. The authors distinguish this from the longer trend value of Sterling.

The study applies a reduced form exchange rate model, first introduced by Edwards (1994), and makes use of Bank of England daily data for the period November 2015–July 2016.

The results indicate a sharp depreciation of Sterling with reference to its long-term trend. The authors set out some of the possible context which may account for fluctuations during the referendum campaigning period. This can be distinguished from other longer-term factors likely to be previously responsible for trend depreciation, and also from the further sharp depreciation effects triggered by the referendum outcome. The principal finding is that during the week of the referendum, up to the declaration of the result, exchange rate depreciation deviated from the long-run trend by approximately 3.5 per cent, but the actual immediate effect on the exchange rate was an 8 per cent depreciation. Over the period from the announcement of the referendum, the exchange rate fluctuated markedly around its trend and one can also identify a larger effect based on the “wrong-footing” of markets at the point when the outcome was announced.

The research has important implications, as one might further infer that this marks a step change in attitudes to Sterling as Brexit became a real issue rather than a notional concern. One can thus consider the exchange rate as both symptom of and indicator for determinations of the underlying economic strength or weakness of the economy. In essence, it has acted as a litmus test.

The research has important practical implications in understanding the dynamics of the exchange rate market and the role of uncertainty in its dynamics.

The study has important social implications as the changes to exchange rates are a perennial cause for concern. Exchange rates sit as one among many problems for the contemporary UK economy. Brexit has resulted in a significant subsequent depreciation of Sterling. Inter alia, though the immediate effect of Brexit on growth was muted due to unexpected sustained consumer spending, throughout the latter half of 2016 and the first two quarters of 2017, business investment slowed, the rate of deficit reduction slowed (but without any concomitant meaningfully rise in government investment in infrastructure, etc.) and both main measures of inflation began to rise.

The study contributes to the existing body of knowledge by exploring the period of uncertainty created by the referendum and its implications for the UK REER. The study differentiates and reflects on the weakness of Sterling due to the weak external position of UK’s economy and the further role played by the uncertainty surrounding Brexit. In this sense, it important contribution to theory as well as practice.

Following the extension of trade and capital market reform in Mexico in the mid‐1980s, manufactured exports accelerated at an exponential rate. In spite of this remarkable performance, the Trade and Current Accounts remained consistently negative, manufacturing as a share of GDP stagnated, and the share of the labour force in manufacturing diminished. Unexpectedly, Mexico's abundant and majority less‐skilled workforce experienced a worsening in the conditions of employment. In the context of trade opening and neo‐liberal reform, inherent market failures involving imperfect information and increasing returns technologies interacted with a ‘maquila’ and a service sector mode—the locus of foreign direct investment—and accounted for the contradictions.

The purpose of this paper is to ascertain whether countries benefit from capital account liberalization in more democratic contexts.

The authors used the follow methodologies in this paper: Pooled OLS, panel data with fixed effects and generalized method of moments. The empirical exercises were conducted for both a large sample and a smaller group of developing countries. Given the characteristics of the variables used in the standard model, the main conclusions were obtained from an estimation that took into account the presence of fixed effects and endogeneity.

Considering a sample of 77 countries, the authors were able to ascertain that capital account openness has a positive effect on economic growth only in highly democratic countries. When the same estimates are carried out with a more restricted sample, composed of 50 developing countries, the results are more pessimistic. In this case, capital account openness has a negative and significant effect, although being more democratic is not sufficient in itself to reap the benefits of financial integration.

The results obtained in this paper are limited to the number of observations and the period analysed. Furthermore, the conclusions need to be confirmed by a test of robustness, which should be conducted in future works; such works could make use of other democracy indicators and other instruments.

The innovation of the work, in comparison to those the authors consulted, resides in its testing, through an interactive variable, whether the effect of capital openness on economic growth depends on level of democracy.

Allyn Young′s lectures, as recorded by the young Nicholas Kaldor, survey the historical roots of the subject from Aristotle through to the modern neo‐classical writers. The focus throughout is on the conditions making for economic progress, with stress on the institutional developments that extend and are extended by the size of the market. Organisational changes that promote the division of labour and specialisation within and between firms and industries, and which promote competition and mobility, are seen as the vital factors in growth. In the absence of new markets, inventions as such play only a minor role. The economic system is an inter‐related whole, or a living “organon”. It is from this perspective that micro‐economic relations are analysed, and this helps expose certain fallacies of composition associated with the marginal productivity theory of production and distribution. Factors are paid not because they are productive but because they are scarce. Likewise he shows why Marshallian supply and demand schedules, based on the “one thing at a time” approach, cannot adequately describe the dynamic growth properties of the system. Supply and demand cannot be simply integrated to arrive at a picture of the whole economy. These notes are complemented by eleven articles in the Encyclopaedia Britannica which were published shortly after Young′s sudden death in 1929.

Aim of the present monograph is the economic analysis of the role of MNEs regarding globalisation and digital economy and in parallel there is a reference and examination of some legal aspects concerning MNEs, cyberspace and e‐commerce as the means of expression of the digital economy. The whole effort of the author is focused on the examination of various aspects of MNEs and their impact upon globalisation and vice versa and how and if we are moving towards a global digital economy.

Henryk Grossman was the first person to systematically explore Marx’s explanation of capitalist crises in terms of the tendency for the rate of profit to fall and to place it in the context of the distinction between use and exchange value. His “The Law of Accumulation and Breakdown of the Capitalist System” remains an important reference point in the Marxist literature on economic crises. That literature has been plagued by distortions of Grossman’s position which derive from early hostile reviews of his book. These accused Grossman of a mechanical approach to the end of capitalism and of neglecting factors which boost profit rates. Grossman, in fact, contributed a complementary economic element to the recovery of Marxism undertaken by Lenin (particularly in the area of Marxist politics) and Lukács (in philosophy). In both published and unpublished work, Grossman also dealt with and even anticipated criticisms of his methodology and treatment of countertendencies to the tendency for the rate of profit to fall. Far from being mechanical, his economic analysis can still assist the struggle for working class self-emancipation.