It is our main concern in this paper to make for the following stages: a) Firstly, stock and flow differential rates will be introduced. Secondly, reverse differential rates are expanded on. Then, the transaction costs function will be featured. As long as we proceed with these issues, fully solved examples are supplied. b) Next, we handle direct applications to financial markets securities. Namely, time deposits, zero coupon bonds, foreign currencies. In each case, not only intuitive acquaintance with the subject is given, but foundations and examples as well.

Las prácticas horizontales concertadas consisten en acuerdos celebrados entre empresas competidoras dentro de un mismo mercado. Su objetivo puede ser diverso, y obedecer a motivos ligados con la eficiencia económica o a causas relacionadas con el ejercicio del poder de mercado.

In this paper we compare the distributions of ADR returns and the returns of the locally traded shares between Chile and Argentina. This comparison is interesting because both countries are emerging economies with a similar free market orientation. Both countries have similar free market orientation, but they differ in two important respects: (1) exchange rate regime and (2) restrictions to foreign investments. We find several differences between the two economies.

Una de las primeras cosas que aprendí en el curso introductorio de economía fue a diferenciar entre necesidad y demanda (como el resto de los seres humanos los africanos necesitan alimentarse, pero no demandan alimentos porque no tienen con qué pagarlos).

Esta diferencia vino a mi memoria porque en las líneas que siguen quiero diferenciar entre aquellas labores que a los economistas nos permiten ganarnos la vida (demanda), y la “misión” que tenemos en esta Tierra (necesidad).

We develop the implications of political budget cycles for real exchange rates in a two-sector small open economy with a cash-in-advance constraint. Policy makers are office motivated politicians. Voters have incomplete information on the competence and the opportunism of incumbents. Devaluation acts like a tax, and is politically costly because it can signal the government is incompetent. This provides incumbents an incentive to postpone a devaluation, and can lead to an overvalued exchange rate before elections.