Essays in International Finance

Preceding the global financial crisis, the 1990s witnessed a series of currency crises alongside the formation of the European Union. These events fostered a trend towards market lib-eralization, facilitating the capital flows of different types of assets. many nations adopted floating exchange rates to grant increased autonomy to their Central Banks, consequently al-tering monetary policy regimes. This evolution in exchange rate mechanisms was intricately linked to the expanding global trade and financial markets. The returns and volatility of these markets became crucial tools for policymakers, not solely in managing international trade but also in forecasting capital flow behaviors within the countries. As…