In this paper, the forward rate unbiasedness hypothesis is re-examined by panel cointegration. This paper augments the empirical literature by applying the panel cointegration developed by Kao and Chiang's (1999) dynamic ordinary least square (OLS) to examine the panel of 17 OECD countries. In...

The financial crisis of East Asia in 1997 was largely unanticipated and was characterized by the fact that drastic currency depreciation worsens the corporate capital structure and brought widespread financial turmoil. This paper attempts to examine the vicious cycle mechanism of East Asia...