The main objectives of this research are to analyze the trends of expectations condition within Malaysian economic system and investigate the existence of Hopf bifurcation in the economic dynamical system’s policy in order to examine the existence of periodic solutions. The study uses two...

In this paper, we apply the optimum currency area (OCA) criteria to assess the suitability of whether the US, Japan or China would best serve as the monetary anchor country for East Asian countries. The OCA criteria used are trade openness, business cycle synchronisation, real exchange rate...

This article employs structural break tests of unknown point with nuisance parameter to test for possible break in China's business cycle volatility and identifies that the last quarter of 1995 is the significant structural break point. The paper then constructs a counterfactual analysis to...

In this paper we set up a New-Keynesian model with a heterogenous banking sector to analyze liquidity problems on the interbank market. The presence of an interbank market is essential to consider a situation where an increased liquidity supply by the central bank is only partially passed on to...

This paper reconsiders the role of macroeconomic shocks and policies in determining the Great Recession and the subsequent recovery in the US. The Great Recession was mainly caused by a large demand shock and by the ZLB on the interest rate policy. In contrast with previous findings, the...