The lag in effect of monetary policy contains vital information for the policy evaluation. Allowing for a time-varying treatment effect, we show that Inflation Targeting (IT) effectively lowers inflation for both developed and developing countries. Developed countries reach their targets rapidly...

The United States banking industry experienced a period of poor performance in the late 1980s. Significant problems with loans as reflected in loan loss provisions and net charge offs hampered bank profitability. We examine the effect of portfolio composition on net charge offs at large...

This letter reconsiders the empirical tests of the new Keynesian and new classical models performed by Ball Mankiw and Romer and Akerlof, Rose and Yellen. The original tests conform basically to cross-section analysis; we develop both time-series and pooled cross-section, time-series tests of...

This study applies a simple and powerful nonlinear unit-root test proposed by Sollis (2009) to test the validity of long-run Purchasing Power Parity (PPP) for Germany's real exchange rate <italic>vis-à-vis</italic> its trading partner countries. The empirical results indicate that PPP holds for Germany relative...

This study applies the Sequential Panel Selection Method (SPSM) to test the mean reversion properties in the real interest rates for the G-10 countries (i.e. Belgium, Canada, France, Germany, Italy, Japan, the Netherlands, Sweden, the United Kingdom and the United States) over the period 1980M1...

This study applied the nonlinear Kapetanios <italic>et al.</italic> (2003) test with a Fourier function (capturing the smooth breaks) to test the validity of long-run Purchasing Power Parity (PPP) for G-7 countries over the period January 1994 to April 2010. The empirical results indicate that PPP holds for all...

This study applies the Sequential Panel Selection Method (SPSM) procedure proposed by Chortareas and Kapetanios (2009) to test the validity of long-run Purchasing Power Parity (PPP) for a sample of East Asian countries over the period March 1985 to September 2011. SPSM classifies the whole panel...

This empirical note applies a simple and powerful nonlinear unit root proposed by Sollis (2009) to test the validity of long-run Purchasing Power Parity (PPP) for Japan's Real Exchange Rate (RER) vis-à-vis its eight trading partner countries. The empirical results indicate that PPP holds for...

This study applies a simple and powerful nonlinear unit root test proposed by Sollis (2009) to investigate the Purchasing Power Parity (PPP) for China's real exchange rate vis-à-vis her nine trading partner countries over the period January 1986 to October 2009. The empirical results indicate...

Since introduction of unit roots, researchers have tried to solve the purchasing power parity (PPP) puzzle or its failure by testing for stationarity of the real exchange rates. Failure to support the PPP is mostly said to be due to low power of these tests. Panel unit root testing is more...