Resolving the unbiasedness and forward premium puzzles

There are two unresolved puzzles in the empirical foreign exchange literature. The first is the finding that tests of forward rate unbiasedness using the forward rate and forward premium equations yield markedly different conclusions. A companion puzzle - the forward premium puzzle - is the fact that the forward premium incorrectly predicts the direction of the subsequent change in the spot rate, which implies a massive rejection of uncovered interest parity. This paper resolves both puzzles.Foreign exchange

Using Theory-Based Research in Supporting Creative Learning Environment for Young Children

A supportive creative environment for young children is viewed as an essential element toward facilitating their creative thinking. Creativity requires imagination, insight, problem solving, divergent thinking, the ability to express emotions and to be able to make choices, thus we created a supportive learning environment to nurture creativity in three to four year olds. In this chapter creativity theory is discussed and how to apply to the early childhood educational setting. The Reggio Approach and creativity-provoking methods are discussed. Application of the theory relates to how children are immersed into activities encourages problem-solving, exploration, creativity and the learning supported by play based experiences for children. Examples are given as to how one child development center has provided curriculum, arranged the indoor and outdoor spaces, and integrated the artist in residence concept into the setting