In a stylized continuous-time model of a small open economy with perfect capital mobility and a pegged exchange rate, I analyze an experiment in which domestic residents expect a future devaluation. Taking the public’s expectations as exogenous and allowing them to be divergent, I analyze in a short time period before the expected devaluation takes place how transactions of short-term collatera...

The item from the Editor’s desk on the devaluation of post-traumatic stress disorder (PTSD) (Tyrer, 2005) is to be welcomed, and in my view this issue is indeed ‘highly significant’. Post-traumatic stress disorder is surely not a true medical diagnosis, rather it is best seen as a medicolegal, benefit-linked criterion. It is a bureaucratic hurdle for a claimant to surmount, not a medical diagno...

The item from the Editor’s desk on the devaluation of post-traumatic stress disorder (PTSD) (Tyrer, 2005) is to be welcomed, and in my view this issue is indeed ‘highly significant’. Post-traumatic stress disorder is surely not a true medical diagnosis, rather it is best seen as a medicolegal, benefit-linked criterion. It is a bureaucratic hurdle for a claimant to surmount, not a medical diagno...

Overweight and obese (“heavyweight”) people devalue themselves because, it has been proposed, they are socially devalued. However, for women, social valuation depends not only on how much weight carry but also where their bodies it. Here, we investigated whether weight-based self-valuation perceived similarly depend body shape. Study 1, using a nationally representative sample from National Hea...

The main goal of the present paper is to analyze the effects of currency collapses (a large devaluation of country’s nominal exchange rate) on real gross domestic products of six Asian countries (Iran, Indonesia, Malaysia, Pakistan, South Korea, and Turkey). A yearly data is collected from the WDI of the World Bank over the period 1980-2011. The econometric model includes the real GDP growt...

The ERM crisis of 1992 appears to be due to a series of negative output shocks followed by devaluation. This stylised fact does not seem to conform to the “second-generation “ crisis model based on the REH. We show that by adopting bounded rational learning, the model yields a tradeoff between the size and persistence of shocks leading to devaluation, a finding which makes the model more clearl...