Exchange Market Pressure and the Credibility of Macau's Currency Board
In this study, we assess the credibility of the currency board arrangement (CBA) of the Macau Special Administrative Region by studying the relationship between exchange market pressure (EMP) and the anchors of a rule-based CBA, namely, interest rate arbitrage, exchange rate arbitrage and economic discipline. A pure CBA signals its credibility by allowing the first two anchors to function automatically and by pursuing sound fiscal policies. The analysis’ results suggest that Macau’s CBA has been characterised by a state of low volatility since late 1992, with the brief exception of the East Asian financial crisis period. The paper’s main finding is that fiscal fundamentals seem to have a more pronounced role in reducing EMP’s variability during periods of low volatility whilst interest rate arbitrage is more important in periods of high volatility. We conclude that Macau’s CBA is credible at present as reflected in the low frequency of observed EMP, in the narrowing of Macau’s interest rate differential vis-a-vis U.S. interest rates and in Macau’s substantial fiscal reserves.
Exchange Market Pressure In Costa Rica, 1986–92: An Application of the Girton-Roper Model
This paper applies the Girton-Roper (.1977) monetary model of exchange market pressure to the experience of Costa Rica in the period 1986-92. The results provide strong evidence of a negative relation between domestic credit creation and exchange market pressure and indicate that the Central Bank absorbed most of the exchange market pressure by adjustments in foreign reserves. [F51]
DIFFERENTIAL CALCULUS OF SEVERAL VARIABLES WITH MATHEMATICA OR MAPLE
The use of Computer Algebra Systems (CAS) in Mathematical Laboratories at Engineering Schools is increasing. Therefore, it has become necessary to undertake a new educational approach in the teaching of many mathematical topics. Obviously it is not possible to give the same lectures as in the 1950,s. The CAS allows us to experiment and teach in “a different way”. The students' mathematical knowledge at the beginning of their studies in the University is completely different. Moreover we have fewer credits assigned to Mathematical topics in engineering curriculum. The objective of he authors, professors of different Spanish Universities, is to try to demonstrate a new way to use the CAS, concretely Maple and Mathematica, as a support in the teaching of Differential Calculus of Several Variables. They take advantage of the computer's graphical capacities to sketch the graphs of surfaces defined in explicit, parametric or implicit form. They survey the general topics: limits, partial derivatives, differentiability, chain rule, implicit functions and extreme values. For each topic, they give a few basic instructions of the CAS used; afterwards they give several examples, in increasing order of difficulty, and finally the students must solve exercises and try to establish a general procedure for a quite general problem. In this paper we have included several examples used in this survey.