EFFECTS OF U.S. INTEREST RATES ON THE REAL EXCHANGE RATE IN MEXICO

Using monthly data to bond and equity markets in Mexico from U.S. investors, we search for responses in the vector autoregressions (VARs) - on the real exchange rate and reserves in Mexico - to shocks in U.S. interest rates and to the Mexican M2/Reserves ratio over the years 1988-2001. The ratio M2/Reserves measures the degree of financial vulnerability and brings this literature closer to theoretical constructions. Shocks to U.S. interest rates explain not more than 7.4% of the variance of international reserves and only 5.5% of real exchange rate changes under conventional specifications. Blending M2/Reserves with real exchange rates at the end of the VAR, external shocks explain 12.5% of the variance of real exchange rate one year after the shock and 12.8% of the variance of M2/Reserves. Typically, the responses in Mexico of U.S. interest rate shocks are as expected: higher shocks to U.S. interest rates move Mexican M2/Reserves up, depreciating the real exchange rate in Mexico.

THE MEXICAN PESO AND THE KOREAN WON REAL EXCHANGE RATES: EVIDENCE FROM PRODUCTIVITY MODELS

Using the U.S. as benchmark country, Korean data from 1970:1 to 2000:4 and Mexican data from 1983:1 to 2000:4 are decomposed into traded and non-traded sectors. We find that the traditional purchasing power parity (PPP) model performs remarkably well for the Peso and that the productivity model appears adequate for the Peso but not for the Won. As Mexican relative traded goods productivity rises, the nominal Peso appreciates (coefficients between -2.03 and -2.16). Conversely, as U.S. relative traded goods productivity rises, the Peso depreciates (coefficients between 2.06 and 2.48). Although predicting correctly the direction of change, such large magnitudes suggest only partial support for the theoretical mechanism in Mexico. Coefficients with contrary signs obtained in Korea may indicate competing models (neoclassical or Ricardian) are more appropriate to capture the relationship between productivity and exchange rates.Cointegration, Non-traded Goods, Traded Goods, Traditional PPP, Productivity Models

Random walks and half-lives in Chilean and Mexican peso real exchange rates: 1980-2003

Several papers have shown that high-inflation contributes to mean reversion in real exchange rates. This paper studies the Chilean peso (CLP) and Mexican peso (MXN) real exchange rates over 1980-2003. Three datasets are used: two with quarterly and monthly bilateral data (against the U.S. dollar) with consumer and producer price indices and another with monthly real effective rate exchange rates (REER). Unit root tests do not reject the root in levels for both currencies. Half-lives, however, contrast markedly: at 5 years or infinity for the Chilean peso and between 1 and 3 years for the Mexican peso. These findings suggest that the sharp depreciations in MXN and Mexico’s relatively higher inflation record may have amplified monetary forces in the dynamics of the real exchange rates.ARMA models, half-lives, random walks, real exchange rates, unit roots

Concern about Fairness, Ethical Idealism and Demand for Formal Procedures of Information Management

What factors can predict and explain customers’ demand that formal procedures of information management be implemented in information intensive organizations? Using data collected from students at a large U.S. university, we investigate the effects of students’ concern about fairness and their ethical idealism on students’ demand that universities implement formal procedures in managing information about students stored in databases. We find that individuals’ concern about fairness and their ethical idealism positively correlate with their demand for formalization of information management procedures in organizations. Implications of the findings for universities are discussed in light of ethics, strategy, design, control and administration of personal information management systems in organizations

Four essays on the empirical open macroeconomics : on exchange rates and the current account

Thesis (Ph.D. in Economics)--University of Tsukuba, (A), no. 1596, 1996.7.2

How are Concerns about Errors and Ethics Related to Demands for Information Systems Audits?

What factors affect individuals\u27 demands that information systems (IS) audits are implemented in the organizations with which they do business? Using concepts and constructs from theoretical literature on individuals’ concerns about organizational information management practices, we build a theoretical model that can explain and predict individuals\u27 demand for information systems audit in organizations. Using data from U. S. university students, we empirically test two hypotheses using a multiple regression model. It was found that students’ concern about error in data and their concern about organizational ethics of information management positively affect students’ demand for IS audit at U. S. universities

Does Inflation Targeting Matter for Output Growth? Evidence from Industrial and Emerging Economies

This paper examines the effects of inflation targeting on industrial and emerging economies' output growth over the "globalization years" of 1986-2004. Controlling for trade openness and two indicators of financial globalization, the authors find systematic positive and significant effects of inflation targeting on real output growth. In dynamic models, the findings show strong output persistence in industrial economies, in which partial and full inflation targeting regimes have a positive long-run impact on growth. In emerging markets, only full inflation targeting policies have any output effect in the long-run. The results suggest that strict inflation targeting is needed to make the discipline effect of the disinflation process outweigh the output costs of promoting high interest rates to attract capital flows in a global world. These findings are robust to the treatment of endogenous globalization measures.Economic Growth; Globalization; Inflation Targeting; Panel Data Methods

Do Information Privacy Concerns Affect Students’ Feeling of Alienation?

Organizations such as universities collect and use personal data about customers such as students. How do students feel about their university’s practices related to the collection and use of personal data? Using data collected via a survey of 187 students at a large U.S. university, we investigate the effects of these two privacy concerns on students’ feeling of alienation. Implications of the results are discussed in light of ethics, strategy, design, control and administration of personal information management systems

Assigning AI: Seven Approaches for Students, with Prompts

This paper examines the transformative role of Large Language Models (LLMs) in education and their potential as learning tools, despite their inherent risks and limitations. The authors propose seven approaches for utilizing AI in classrooms: AI-tutor, AI-coach, AI-mentor, AI-teammate, AI-tool, AI-simulator, and AI-student, each with distinct pedagogical benefits and risks. The aim is to help students learn with and about AI, with practical strategies designed to mitigate risks such as complacency about the AI's output, errors, and biases. These strategies promote active oversight, critical assessment of AI outputs, and complementarity of AI's capabilities with the students' unique insights. By challenging students to remain the "human in the loop," the authors aim to enhance learning outcomes while ensuring that AI serves as a supportive tool rather than a replacement. The proposed framework offers a guide for educators navigating the integration of AI-assisted learning in classroomsComment: 46 page