Abstract In the context of the discussion of the new financial architecture the idea of a Tobin tax is revived. Mainly due to the pressure of several non-governmental organisations (NGO’s) the Tobin tax is currently discussed seriously in various policy circles. Recently, the German Federal...

Abstract Due to changes in the German Corporate Governance Code the transparency of compensation of the members of the management board has become a central element of the German corporate governance system. We analyze how the new transparency will influence the average compensation level. It...

Abstract We analyze the law regarding the adequacy of executive directors’ compensation in Germany. First we provide an overview of the law’s contents clustered in four different fields. We also introduce economic theories to analyze the principal-agent relationship with one principal...

Abstract In this paper, we present two models in which the introduction of a “lender of the last resort” significantly affects the banking sector. In the first model, the introduction is stabilizing. However, in the second model it is destabilizing. Both models are very well suited to...

Summary The paper examines the relationship between central bank interventions in the dollar-deutschmark market and the profitability of technical trading for the period 1979-1992. While previous work on this topic focused on the interventions of the Fed, we include data on Bundesbank...

Summary Exchange rates have been found to be more volatile than underlying macroeconomic fundamentals. Researchers have argued that the empirically observed high exchange-rate volatility may result from herd behavior of foreign-exchange traders and forecasters. We sketch a standard model that...

Summary We use oil price forecasts from the Consensus Economic Forecast poll for the time period Oct. 1989 - Dec. 2008 to analyze how forecasters form their expectations. Our findings indicate that the extrapolative as well as the regressive expectation formation hypothesis play a role. Standard...