This paper extends the results obtained by Hwang et al. (1997) and Yang (2005) to the case of multi-domestic firms. Either the domestic government's budget constraint may be binding or there exists the social cost which caused by financing the export subsidy, we find that the policy of the...

This paper builds an inter-temporal model to study the value and network effects in the process of currency substitution. According to our model, we can define the inaction area and malignant area by taking real interest rate difference and network effect variable as two axes. We also find that...

This paper investigates the relationship between the collapse timing of exchange rate regime and degree of substitutability of foreign currency for domestic currency as a medium of exchange. According to the spirit of Chen et al. (1981), Tsaur (1987), Chang et al. (1991), we set up a...

This paper extends the theoretical model of Liaw et al. (2004) to incorporate the supply shocks of output. For a country adopting dual floating exchange rate system and facing the supply shocks will cause the price level to increase persistently. If the price level reaches the price ceiling...

This paper briefly surveys the development of international finance theories after the 1960s. The important theories reviewed in this paper include: exchange rate dynamics, policy pre-announcement, first-generation currency crises, intertemporal optimizing model, exchange rate target zones,...

The English version of this paper can be found at 'http://ssrn.com/abstract=2949307' http://ssrn.com/abstract=2949307.Chinese Abstract:...

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Chinese Abstract:...