The overvaluation of a currency "crowds out" the tradeable goods industries of the country and enhances the profit rates of foreign competitors. This asymmetry can bring about long-term changes in the competitiveness of the country's tradable goods industries, as for eign firms are able to use...

The phenomenon of financial crisis is not well based in theory. This paper offers a transposition of Hicksian (flow) instability into an asset market framework. Factors contributing to systemic vulnerability to crisis are the degree of financial leverage of the participants in the market...