In this paper, I use GARCH model to explain the relationship between real exchange rate and its uncertainty using real exchange rate data of Singapore. The result supports no evidence that overvalued real exchange rate creates uncertainty of exchange rate policy in Singapore. This may give some ideas to country like Indonesia or Thailand to still maintain the peg system and not easily, just accept the idea of using currency board system (CBS) or other strategies in its exchange rate policy. Indonesia needs to learn how Singaporean economic strategy brings the country to higher levels of economic development while still maintaining peg system. DOWNLOAD

More

The economic crisis engulfing many Less Developed Countries (LDC’s) has focused attention on the fragility of their financial sector. But longer-term need of many LDC’s economies is to boost technological capability. While the physical capital is no longer the main problem for most of them, they need to improve their human capital by giving them appropriate skill and knowledge through educational improvement policy. This paper proposes strategies to improve the human capital by adding World Bank suggestion to enhance the information sector, which is crucial to effective market. DOWNLOAD

More

Evidences that young people are the highest risky drivers causing highway deaths and fatalities had made the Congress to pass the Legislation (S 378) to restrict young people driving on the road. The focus of the legislation is how to reduce the alcohol use of young people that is suspected to be one of the most significant factors causes the highway deaths and fatalities. This paper, using the time series and panel data approach shows that it is more efficient to focus the legislation for all people in reducing the highway death and fatality rate. Further, the appropriate policy that should be passed by the Congress is how to limit the speed of vehicles on the road. DOWNLOAD

More