This paper examines the functional form of the impossible trinity hypothesis for five selected countries in the Asian and Pacific regions including Australia, Japan, New Zealand, Singapore and South Korea. The linear, log-log and semi-log forms are compared. Based on the mean absolute percent...

Applying the autoregressive distributed lag model, this paper examines whether different exchange rate arrangements may affect monetary autonomy. In the short run, all the countries have moderate or significant monetary autonomy due to partial or small adjustments. In the long run, Hong Kong,...

We analyze the relation between interest-rate controls and equilibrium determinacy in a two-country model in which money is employed as a factor of production. Given this specification, holding cash generates an opportunity cost. Therefore, equilibrium can be indeterminate even if both countries...

The purpose of this paper is to empirically evaluate a dynamic error correction model that incorporates monetary disequilibrium in the demand for international reserves using Nigerian data for the period 1970 – 2007. The results show that reserves movement respond both to actual and...

The policy of inflation targeting is a monetary regime which seeks inflation. His practice was marked by a high stability observed. A debate emerged on the effectiveness and economic performance of this regime. Many searches are interested in this issue without being able to even reach an...

This paper analyzes the relationship between the optimal weight on output gap in the central bank's loss function and the degree of inertia in a hybrid version of New Keynesian model with a pure discretionary inflation targeting. I show that under endogenous persistence of inflation dynamics,...

We estimate small open economy models in which inflation targeting central banks respond to a discounted infinite sum of expected inflation and output gaps (Calvo-type rules). The results support Calvo-type rules for Australia and Canada, and suggest longer targeting horizons for inflation...

I contemplate the Taylor rule as a benchmark for setting monetary policy in some Accession Countries to the EU in the 1998-2003 period. I find that countries with a floating exchange rate regime (the Czech Republic, Poland and Hungary) moved short-term interest rates as suggested by the Taylor...

I contemplate the Taylor rule as a benchmark for setting monetary policy in some Accession Countries to the EU in the 1998-2003 period. I find that countries with a floating exchange rate regime (the Czech Republic, Poland and Hungary) moved short-term interest rates as suggested by the Taylor...

In this paper, we study the inflation dynamics in four industrial inflation-targeting (IT) countries. Our objective is to check whether this monetary policy had a stabilization effect on inflation rate for four industrials countries. We propose in this paper a new empirical methodology by using...