We investigate long-run relations and short-run dynamics between China’s bilateral trade balance and real exchange rates with thirteen major trading partners over 1981-2008. Maximum likelihood tests of cointegration reveal no evidence of significant long-run relationship between the two...

Contrast to the BEER, PEER and FEER approaches, this paper develops a two-country model of monopolistic competition to re-examine whether the Chinese Renminbi is undervalued and to what extent it is undervalued. A testable equation that governs the equilibrium exchange rate of Renminbi is...

This study argues that the political considerations were an important factor behind the crisis of the Brazilian real in January 1999. The divided coalition government and a president facing impending elections eschewed the correction of external misalignments and the fiscal austerity at a time...

The paper seeks to analyze various contemporary theories in the measurement of real exchange rates and the associated problematics involved in each case particularly for a developing economy. It then focuses on the estimation of real exchange rate for the developing economy of Turkey using the...

This paper examines the experience of most Central and Southeastern European countries with respect to the exchange rate regimes they adopted. It first analyzes the exchange rate arrangements of these countries at the beginning of the transition process and how they relate to their initial...

The paper seeks to unfold some of the popular myths and realities concerning the recent financial crisis in the MIT (Malaysia-Indonesia-Thailand) countries. In this connection, it also analyses the various models of speculative attacks and their applicability, and the systemic implications of...

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 defining feature of globalization is the fragmentation of individual blocks of an integrated production process across countries. This necessitates flows of final goods as well as their parts and components back and forth among the involved nations. A depreciation of a country’s currency...

This paper examines India’s pattern of development, on the basis of the hypothesis that India today reflects the legacy of a combination of policies simultaneously favouring and disfavouring domestic entrepreneurship. India differs from all other economic systems at the same development level...

The aim of this paper is to establish stylized facts for the small developing economy of Tunisia using time series techniques over the period 1963-93. This is achieved by testing for the macroeconomic variables driving the business cycle. The paper extends the vector-autoregression (VAR)...