We investigate how the exchange rate regime influences economic linkages between countries. We divide the exchange rate regime into three classifications: currency union, peg and floating exchange rates. Unlike most studies that solely focus on the relationship between anchor and client...

This paper investigates how both inter- and intra-sectoral reallocations of workers contribute to fluctuations in the aggregate unemployment rate. On the basis of the Panel Study of Income Dynamics (PSID) data for the 1986-96 period, we construct a monthly longitudinal data set that enables us...

This paper explores the effects of the proposed free trade agreement between Japan and Korea. Our experiments are based on a new dynamic simulation model, called the Asia-Pacific G-cubed Model, which incorporates the rational expectations and intertemporal optimizing behaviour of agents. The...

This study examines the impact of capital controls using monthly information to construct higher-frequency, quarterly indexes for Malaysia and Thailand over the period 2000--2010 in a Vector Auto-Regression (VAR) model. The results show that effectiveness of a capital control policy is not...