Cross-currency basis swap rates that exchange US-dollar (USD) and Japanese-yen (JPY) LIBORs have fluctuated since the late 1990s. It is increasingly important for market participants to figure out such swap rates, but there have not been many empirical studies about actual markets. This study...

The main objective of this study is to re-investigates the exchange rates predictability puzzle using monetary model. It is hypothesised that the performance of exchange rate predictability is better off in countries with monetary instability. We employ bootstrap technique as proposed by Kilian...

Iceland experienced a significant financial meltdown and subsequent economic downturn after the 2008/2009 financial crisis struck the country. It had been the worst crisis ever experienced by a small country from the late 20th century onwards. Since 1980s, Iceland's macroeconomic stability had...

The paper analyzes Australian exchange rate and its determinants by providing an insight into the economic and non-economic factors. By drawing a comparison between quarterly and annual data over the period of 1975 to 2012, it is suggested that Australia’s trade components and macroeconomic...

Morocco and Tunisia are performing in term of economic growth better than the average economic growth of the Middle East and North Africa (MENA) region and middle-income countries. Tremendous efforts in terms of reforms and restructuring of the economy have been deployed in the early 80s. The...

Currency substitution is a widely spread phenomenon in developing countries with high level vagueness of its concept and causes. Therefore, this paper goes all out to examine the relationship that exists between currency substitution and some macroeconomic variables such as exchange rate,...

Exchange rate remains one of the principal determinants of a nation’s external balance and fiscal status of most emerging economies. How better its fluctuation is managed has a long way to go with the performance of major macroeconomic variables in a country. It is behind this backdrop that...

This paper analyzes the costs and benefits for an emerging economy to formally adopt dollarization. The magnitude of the costs and benefits involved in this process will not be the same for all countries and depend on the particular characteristics of each economy as well as its relationship...

This article examined the exchange rate managements in the crisis-experienced emerging market economies after the 1990s. First, we found that the exchange rate flexibility has increased from the pre-crisis period towards the post-crisis period under the “soft peg” regime. Second, we...

This article examined the exchange rate movements and their impact on the external balances in the 1990s in the selected ASEAN countries. The main findings are as follows. The real effective exchange rate (REER) - the relative prices against the world competitors - shows a trend of appreciation...