Four different models are considered in examining the movements in the AUD/USD exchange rate. Based on the value of R2, the uncovered interest parity model performs best, followed by the purchasing power parity model, the monetary model, and the Mundell-Fleming model. The opposite signs of the...

This paper examines output fluctuations for Lithuania by applying the IS-MP-UIP model. Comparative-static analysis is applied to find the possible sign of a change in an exogenous variable on the equilibrium real GDP. The generalized least squares method is employed to estimate consistent...

The Box–Cox transformation indicates that the log-linear form for M2 demand cannot be rejected while the Fair (1987) specification and the linear form can be rejected at the 5% level in favor of general functional form. M2 demand is positively influenced by real GDP, the deposit rate, and the...

Purpose – The purpose of this study is to examine the impact of income inequality on economic growth in the US. Design/methodology/approach – This paper applies the endogenous growth model including human capital and technological progress. The generalized autoregressive conditional...

This article extends the IS-MP-IA model (Romer, 2000) and applies the GARCH process (Engle, 1982, 2001) to study output variations in Slovenia. Equilibrium GDP in Slovenia is found to have a positive relationship with real depreciation and the world output and a negative relationship with the...

The demand for real M2 in Estonia is positively influenced by real income, real stock prices and the depreciation of the kroon, and negatively associated with the deposit rate, the euro interest rate and the expected inflation rate. Hence, a higher euro interest rate would help raise Estonian...

This article considers potential impacts of the intended and unintended federal funds rates on the slope of the Treasury yield curve during 1987.M8 to 2006.M1. A third-order autoregressive model is employed in empirical work to correct for serial correlation. The positive significant sign of the...

This article applies the extended Box-Cox model to test functional forms of purchasing power parity (PPP) for nine new EU countries. It finds that the widely used double-log form for PPP can be rejected for eight countries except for the Czech Republic and that the unitary elasticity can be...

This article examines the potential impacts of monetary policy on the yield of Treasury inflation-protected securities (TIPS). A quadratic relationship is confirmed for all four types of TIPS. It suggests that Fed easing would not lower TIPS yields when the federal funds rate is below certain...