Bundesbank intervention effects through interest rate policy

This paper investigates the effects of the changes in the Bundesbank's discount and Lombard interest rates on the volatility of European Union country exchange rates relative to the German mark during 1987–93. The first year of the sample period contains the last major realignment in the ERM before its ‘breakdown’ in 1993. Using a parsimonious EGARCH model, we find that the conditional volatility of these exchange rates increased in response to interest rate changes, regardless of the rate change direction. This finding is in direct conflict with Bundesbank's public statements that indicate that its interest rate policy was designed to calm its foreign exchange markets.     

Merger and Acquisitions as Adjustment Processes

The Tichy review needs to be placed in a broader conceptual framework. Declining transportation and communication costs have globalized markets. Technological changes including Internet developments have transformed industries and blurred industry boundaries. Such change forces have required adjustments by all firms. Mergers represent only one of the many strategies business firms have used. In adjusting to changing environments and competitive developments, firms changed the scope and mix of products and markets. Alliances, joint ventures, licensing, franchising, investments modify organization structures and business relationships. Divestitures, spin-offs, split-ups, rollups, consolidations, downsizing, and reorganizations alter the size, focus, growth rates, and vertical structures of firms. The efforts seeking to improve a firm's competitive position succeed or fail in various degrees. The many forms of industry and firm adjustment processes make structural-based antitrust guidelines bad policies.     

A SIMPLE TEST FOR UNIFORMITY

Abstract A new and very simple test for uniformity is proposed. An exact formula for the distribution under H₀ of the corresponding test statistic is derived. This formula is only suitable for computer-oriented use. For other circumstances a table of critical values is given. The power of the test is compared with that of two well-known alternatives: the χ²-test and the Kolmogorov-Smirnov test.     

Social futures in a wired world

The technological advances that enable cheap and reliable access to distant data bases puts us on the threshold of not just a concept of a wired city but of a wired world. Our informational environments are going to become more comprehensive and instantaneous.