This paper examines the effect of the nominal exchange rate regime on real exchange variability, specifi cally testing the hypothesis that real exchange rates are more volatile under fl exible than under fi xed exchange rates. To avoid the problem of distinguishing between de facto and de jure...

A microeconomic view of exchange rate determination is used to explain exchange rate behaviour, particularly volatility. The pitfalls of trying to represent the exchange rate determination process by a simple model are exposed. It is shown that fundamentals are important for, and relevant to,...

An ARDL model is estimated and subsequently used to forecast the exchange rate of the Kuwaiti dinar (KD) against the U.S. dollar. It is demonstrated that this exchange rate is related to the exchange rates of the yen, mark and pound against the dollar in accordance with the arrangement of...

A model relating changes in the exchange rate to the activities of fundamentalists and technicians is specified and estimated. The results show that both types of traders play a role in exchange rate determination and that fundamentalists play a bigger role. The results of model selection tests...

This paper attempts to resolve the Feldstein-Horioka puzzle represented by the contradiction between the casual observation that capital mobility has reached a high level and the empirical evidence indicating the contrary by showing high saving ¬investment correlations. Three lines of enquiry...

This paper presents some empirical evidence on the traditional covered interest parity theory and the modem theory of forward exchange under the current system of floating exchange rates. It is argued that reintegration analysis is more appropriate for testing these theories and that it is...