The main purpose of this paper is to determine empirically whether currency depreciation is expansionary or contractionary in Asian countries. It is argued that by disrupting the operation of the financial sector and by introducing uncertainty among consumers and investors, currency depreciation...

In introducing an absorption approach to the trade balance, Alexander (1952) argued that if wages do not adjust fully to the inflationary effects of devaluation, devaluation can redistribute income from workers to producers in the form of increased profits. Increased profits, in turn, could give...

Inflation uncertainty, measured by the volatility of inflation, is said to have a negative effect on domestic consumption by making the public more cautious about their spending. Since exchange rate volatility contributes to inflation volatility, we conjecture that it could have a direct effect...

Previous research that has tried to identify the determinants of income inequality has used cross-sectional data, mostly due to a lack of time-series data for individual countries. Any result using cross-sectional data is usually generalized by ignoring country-specific characteristics. Now that...