What is the driving force of the macroeconomic fluctuations in Japan over the past forty years? To answer this question, we specify a structural vectorerror-correction model using combination of long-run and short-run restrictions. Especially by dividing the supply shocks such as neutral and...

I revisit the hotly debated topic regarding the possibility of introducing a common currency for East Asia from the point of view of shock symmetry. I first point out a serious problem of the existing studies which use the VAR method with long-run restrictions developed by Blanchard and Quah...

This paper studies the sources of high and chronic inflation in Vietnam in recent years using the structural VAR method identified by sign restrictions. The novelty of the paper is that the sign restrictions are drawn from a New Keynesian small open economy DSGE model built and calibrated to the...

We use a vector autoregressive model with block exogeneity to study the macroeconomic effects of oil price fluctuations for six small open economies in Southeast Asia. Our method has an advantage over those used in the literature in that it allows us to focus on the effects of oil shocks while...

Over the last few decades there has emerged quite a unique and interesting trade structure in East Asia, in which countries in the region trade intermediate goods heavily with themselves while trade more final goods with the rest of the world. This paper discusses the facts about this trade...

This paper examines the possibility of introducing a common currency for nine ASEAN countries by analyzing symmetry of shocks between these countries using the structural VAR method developed by Blanchard and Quah (1989), and data on CPI and GDP. Two new contributions of the paper are the...