Debate continues over whether a monetary or currency union will be a viable alternative to the current exchange arrangements in East Asia. This paper adds to the literature by assessing the level of business cycle synchronization among 10 major East Asian economies which is considered a key...

Debate continues over whether a monetary or currency union will be a viable alternative to the current exchange arrangements in East Asia. The present paper adds to the literature by assessing the level of business cycle synchronization among 10 major East Asian countries, which is considered a...

How the price of food is determined has become a critical issue, given the drastic surges in prices in recent years and the prevailing expectation of further increases. Along this line, this paper examines the sources of food price fluctuations in 11 developing Asian countries. The working model...

The effects of monetary policy are transmitted to the economy through changes in money and/or changes in interest rates. Most of the recent studies based on VAR indicate the existence of "monetary puzzles" in their empirical results. A puzzle exists when the effects of monetary policy on...

This paper considers structural models when both I(1) and I(0) variables are present. The structural shocks associated with either set of variables could be permanent or transitory. We therefore classify the shocks as (P1,P0) and (T1,T0), where P/T distinguishes permanent and transitory, while...

We show that the two-variable VAR model of Blanchard and Quah (1989) produces results identical to those based on the Sims (1980) orthogonalization if the first-ordered variable is not caused in the long run by the second-ordered variable. Some illustrative examples are provided to demonstrate...