The status of real and financial integration of China, Hong Kong, and Taiwan is investigated using monthly data on one-month interbank rates, exchange rates, and prices. Specifically, the degree of integration is assessed based on the empirical validity of real interest parity, uncovered...

The concept of purchasing power parity (PPP) is used as an equilibrium exchange rate measure to evaluate whether eight East Asian currencies were overvalued on the eve of the 1997 currency crises: Hong Kong dollar, Indonesian rupiah, Korean won, Malaysian ringgit, Philippine peso. Singapore...

A sticky-price model is used to motivate a structural VAR analysis of the current account the and the real exchange rate for seven major industrialized countries (the U.S., Canada, the U.K., Japan, Germany, France, and Italy). The analysis is distinguished from previous work in that it adopts...

The concept of purchasing power parity is used as a measure of the equilibrium real exchange rate to evaluate whether seven East Asian currencies were overvalued: the Indonesian rupiah, Korean won, Malaysian ringgit, Philippine peso, Singapore dollar, Taiwanese dollar and the Thai baht. The...

The theoretical bases for different definitions of the real exchange rate are discussed. Alternative means of calculating "effective" exchange rates are presented. Some of the empirical characteristics of these series are examined in the context of several Pacific Rim countries. The use of real...

This paper examines the implications of menu cost models for the rate of reversion to purchasing power parity. Recent menu cost models (Ball and Mankiw, 1994) imply that higher inflation is correlated with more rapid price adjustment. This means that reversion to PPP may be more rapid, the...

In this paper, the evidence for a relative tradables-nontradables price based explanation for long run movements in East Asian real exchange rates is examined. Using both time series cointegration techniques and panel regression procedures, I find that the real exchange rates are cointegrated...

The value of China's currency, the renminbi (RMB), and the conduct of China's exchange rate policy have generated intense debate in academic and international policy circles. Despite the accumulation of empirical evidence regarding the degree of RMB misalignment over the past few years, the...

The linkages between the People's Republic of China and the other Chinese economies of Hong Kong and Taiwan are assessed, and compared against those with Japan and the US. We first characterize the time series behavior of three criteria of integration, namely real interest parity, uncovered...

The status of real and financial integration of China, Hong Kong, and Taiwan is investigated using monthly data on one-month interbank rates, exchange rates, and prices. Specifically, the degree of integration is assessed based on the empirical validity of real interest parity, uncovered...