Purpose – The purpose of this paper is to examine movements of the Singapore dollar exchange rate against the US dollar. Design/methodology/approach – An extended open macroeconomic model with the IS, LM, and AS functions and comparative static analysis are employed and applied. The...

Extending the IS-MP-IA model (Romer, 2000), we find that equilibrium output in Singapore is negatively affected by the expected inflation rate and the world interest rate and positively influenced by real appreciation, stock market performance, and world output. Equilibrium GDP would rise by...

There is evidence of a J-curve for the Dominican Republic and lack of support for a J-curve for Costa Rica, El Salvador, Guatemala, and Honduras. The trade balance responds to real depreciation positively for Costa Rica and El Salvador, negatively in the short run and positively in the long run...

This paper reexamines Okun's law by applying the Box-Cox transformation of variables. Major findings are that the effect of a change in the GNP gap on the unemployment rate varies from -0.280 in 1969.1 to -0.801 in 1982.4; the effect is larger (smaller) when the unemployment rate is higher...

Extending the Romer (2000) model and the Taylor (1993; 1998; 1999) rule, this paper derives theoretical relationships between equilibrium output in Mexico and a change in the exchange rate, stock values, or the world interest rate. Empirical results show that more deficit spending, higher stock prices,...

This study finds that the US dollar/kuna exchange rate for Croatia is positively influenced by the expected exchange rate and negatively associated with real M1, the US T-bond rate, the euro interest rate, the expected inflation rate, and the relative price. Deficit spending does not affect the...