Modernization and dependence

The salient feature of the theoretical discussion of development problems is still the rivalry between two approaches. An outline and critique of the dependencia school and the modernization theory is provided in the following article which also points out possibilities of combining both these sets of explanations in an attempt to overcome the dichotomy of development theory.     

The Repo Auctions of the European Central Bank and the Vanishing Quota Puzzle*

Until June 2000 the European Central Bank (ECB) used fixed rate tenders for its weekly repo auctions. A switch to variable rate tenders became necessary due to massive overbidding by banks. In this paper we introduce a stylized game among banks to investigate this overbidding phenomenon. Our results confirm the weakness of the fixed rate tender format and indicate that the ECB's liquidity management has significantly improved since the switch to the variable rate system. Yet recent episodes of rate cut expectations suggest that the ECB's practice of setting a minimum bid rate should be abandoned in favor of a more symmetric interest rate target.     

The prison rule in roulette

Summary In many casinoes a bet on even money chances is not immediately lost when a zero falls. Instead, the stake is imprisoned, and the gambler has the options of demanding half his money back or letting the next spins of the wheel decide on the fate of the stake. These options are compared in respect to their winning probabilities by simple recursive methods.     

Youth unemployment in the Federal Republic of Germany

Although the youth unemployment ratio in Germany may appear low compared to other countries, it is regarded a severe economic and social problem. There is no doubt that it is an especially gross form of waste of resources and “disinvestment” of human capital. In the long run no country can afford to keep a considerable part of its population unemployed if future prosperity is to be maximized.     

The German economy

The World Economy And The West German Economy In The Autumn Of 1990

The German economy