If there is exchange market pressure (EMP), monetary authorities can use the interest rate and official interventions to offset this depreciation tendency, or they can let the exchange rate change. We introduce a new approach to derive how these three variables should be combined to measure EMP....

We test a simple model of exchange rate regime choice with data for 65 non-OECD countries covering the period 1980-94.We find that the variance of output at home and in potential target c ountries as well as the correlation between home and foreign real activity are powerful and robust...

This paper attempts to examine the link between nominal devaluation and real devaluation with special reference to Ghana. To find this relationship, we have employed some sophisticated tests such as ADF, P-P & Ng-Perron unit root tests; ARDL Bounds Testing, and DOLS test for the long run...