This paper examines the twin deficits hypothesis in the ASEAN countries. The major findings of this paper are the following. (1) Long run relationships are detected between budget and current account deficits. (2) The Keynesian view fits well for Thailand since the causality runs from budget...

This study examines behaviour of the Consumer Price Index (CPI)-based Real Exchange Rates (RERs) of the ringgit against the currencies of Malaysia's major trading partners. The empirical results, which are derived from newly developed tests advocated by Lee and Strazicich (LS, 2003) and Narayan...

<title>Abstract</title>This article investigates the mean-reverting behavior of the external debt ratio based on a clustered of 19 Asian countries from 1981 to 2010. For this purpose, we use a government's intertemporal budget constraint (GIBC) model popularized by Hamilton and Flavin (1986). Our conclusions...

In this article we examine the theory of Purchasing Power Parity (PPP) on a sample of Central and Eastern European economies. This article makes two main advances with respect to previous PPP studies. First, it employs a monthly database on real exchange rates for a panel of 12 Central and...

Purpose – The purpose of this paper is to contribute further on the twin deficits debate in a developing economy. Design/methodology/approach – The data for Thailand over three decades are used as a case study. Findings – The major findings are: first, a stable, long-run equilibrium...