M argin loans have long been associated in the popular mind with instability in security markets. Galbraith (1954) placed them at the center of the 1929 Crash, arguing that heavy borrowing from brokers exacerbated the rise in stock prices in the late 1920s and the stock price declines during the Crash. More recently, the analyses of the U.S. Securities and Exchange Commission (1988) and of the ...

This paper examines the relationship between exchange rates and stock prices in eight Asian countries using cointegration and Granger causality tests over the period 1991 to 2005. We test for cointegration and Granger causality for both individual countries using the Gregory and Hansen (1996) cointegration test that accommodates a structural break in the cointegrating vector, and for a panel us...