Explaining exchange rates has long been an important but vexing issue in international economics and nance. In recent years, a number of studies have shown that investors' private information plays a central role in determining exchange rates. We demonstrate in this paper that the private...

This paper offers a justification for and assurance of the efficiency of a monetary policy design that is based on using core inflation as the policy target. Illustrated in a New Keynesian framework where the microeconomic foundation with rigidities of various types is the central feature, the...

This paper presents our forward-looking conjecture of the global macroeconomic and financial environment over the next five years. Among the key unfolding developments we look at are advanced economies' monetary and fiscal policy exits and the remaining global imbalances. According to our...

As the global economic outlook remains uncertain, there is the need for Asia to step up and take a new position as the driving force of the world economy. This means that Thailand needs to adjust herself to the new challenges of increased bank competition, more capital inflows as well as more...

The paper investigates the characteristics of house price dynamics and the role of institutional features in nine Asia-Pacific economies. On average, house prices tend to be more volatile in markets with lower supply elasticity and more flexible business environment. At the national level, the...

We model relationships within as well as between two economic regions—Thailand and the rest of the world—and quantify changes in the spillover relationship between international forces and key Thai macroeconomic variables after the adoption of inflation targeting (2000-2008). Within the same...