Establishing a two-country, two-good, two-money, two-bond continuous-time dynamic portfolio model of international investor, this paper firstly demonstrates that since monies as well as bonds issued in different countries are not perfectly substitutive for each other none of them should be generally ignored in analyzing the exchange rate determination. Then, it presents the general equilibrium conditions of international asset markets considering goods trade imbalances and derives the equilibrium exchange rate. Finally it investigates the effects of large and marginal changes in money supplies, bond supplies and goods trade imbalances on the exchange rate.

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The purpose of this paper is to consider a relationship between hegemonic reputation and a stability of hegemonic system by a finitely repeated game of asymmetric incomplete information. We show that even in an age of hegemonic decline, if the hegemon has a sufficiently strong reputation, a hegemonic system is stabilized by international regimes that are maintained by a hegemon's leadership and non-hegemons' cooperation. If the hegemonic reputation is not strong enough, however, the hegemonic system will be unstable.

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The Mexican financial system has undergone profound change, based on legal reforms in the last years. One of the most important is the privatization of the comercial banks under Pres. Carlos Salinas. These reforms have had two major goals: one is to constitute financial groups, integrating comercial banks and stock companies as the “holdings.” In this case, political stages have been advanced keeping pace with, and after, preceding that in the United States, so called, some reforms of Glass-Steagall Act.
Another goal is the internationalization of mexican financial market, that means to promote the establishments of branches by mexican institutions in other countries, and to induce the subsidiaries of foreign comercial banks. It's one of the results of NAFTA's negotiations, but now mexican banking system has fallen into a dilemma between their need of foreign capitales and the lack of international competitive power.

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In this paper we analyze the change of Korean trade structure with application of the 1975-80-85 link Input-Output table. According to the economic development, the trade structure also changes drastically. Our main topics are following. First, has Korea's trade structural change been the import-augmentative one? Second, if the import-substitution process can be observed, is it grounded on the technological progress that makes the Korean domestic products more internationally competitive?
Our quantitative investigation shows that the import-substitution process has steadily deepened from light industries to heavy industries. Moreover, most of the sectors accomplished the cost reducing technological change. The volume of imtermediate input imports, however, increased especially during the 1980-85 period.
This study suggests that the increasing import of the intermediate input can contribute to the cost reducing technological progress that pushes the Korean manufactured goods aggressively into the international market.

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