Under a floating exchange rate and integrated financial markets an optimizing central bank acting under discretion to … achieve domestic objectives generates a positive co-movement between the domestic and the foreign interest rate in a small … open economy. A high degree of positive co-movement between the domestic and foreign interest rate does not indicate lack …

This study examines the dynamic passthrough of oil price and exchange rate to inflation using a time-varying structural … the recession and the pandemic. Exchange rate passthrough to food inflation during the three events are contemporaneously … neutral but became positive afterwards. The results show that oil price and exchange rate passthrough to food inflation was …

currency. A dynamic joint model of PPP and uncovered interest parity (UIP) is introduced to decompose the real exchange rate … (RER) into two components. Interest rate differential (IRD) is found to drive long run dynamics of the RERs. Analysis on …

foreign reserves on the exchange rate regimes, using the sample of five countries from MSCI developed markets index, emerging …-binary logit (quadratic hill climbing) and investigates the change in the exchange rate regimes due to macroeconomic variables. The … empirical results confirm that Australia, Hong Kong, Japan, New Zealand and Singapore markets take timely correct exchange rate …

Moving away from a fixed exchange rate in 2005, China has gradually enlarged the band of fluctuations of Renminbi (RMB …) and implemented various reforms on its central parity to have a more flexible exchange rate regime. This paper studies the … nature of the exchange rate regime in China since the exchange regime reform of August 2015. Relying on the self …