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Previous studies that included the exchange rate in the Korean demand for money assumed that the effects of the exchange rate changes are symmetric and adjustment process is linear. They found no significant effects. In this paper we apply Shin et al.'s (2014) Nonlinear ARDL approach to...
Persistent link: https://www.econbiz.de/10012930773
A sticky price monetary model (Frankel, 1979) of exchange rates is applied to quarterly data on seven currencies: The Indonesian rupiah, Korean won, Malaysian ringgit, Philippine peso, Singapore dollar, Taiwanese dollar and the Thai baht. The model proves empirically unsuccessful, except in the...
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This paper models alternative policy responses to various sorts of disturbances-or "shocks"-to the steady-state path of a developing economy. Its objective is to arrive at some generalizations about appropriate credit and exchange rate policies. (One result, for example, focuses on the folly of...
Persistent link: https://www.econbiz.de/10014207092
This paper explores the implications of different strategies for financing the fiscal cost of twin crises for inflation … crises; (iii) a portion of the government's liabilities are not indexed to inflation; and (iv) there are nontradable goods … account for the high rates of devaluation and moderate rates of inflation often observed in the wake of currency crises. We …
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