For Korea, the overnight rate responds positively to the inflation rate, the output gap, the lagged real exchange rate, and the lagged overnight rate and negatively to the current real exchange rate. For Hong Kong, the overnight rate reacts positively to the inflation rate and the lagged...

The portfolio model of asset allocations is used to estimate the demand function for real M2 in the United States. The explanatory variables include real return on real M2, real returns on stocks and bonds, wealth, and the expected inflation rate. The cointegration test shows that the demand for...

This paper studies the behaviour of the CZK/USD exchange rate based on four major models. Using the Mean Absolute Percent Error (MAPE) as a criterion, the IS-MP model performs best, followed by the monetary model, the Purchasing Power Parity (PPP) model using the relative Producer Price Index...

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 paper examines the J-curve hypothesis for Australia, Canada, New Zealand and the UK. Applying the vector error correction model and the generalised impulse response function, this study finds that the trade balance reacts to real depreciation in several different patterns in the short run....

The objective of the paper is to examine the impact of higher oil prices on Mexico's real GDP. Applying an open economy model, this paper finds that more money supply, more deficit spending, a higher real stock price, real appreciation of the peso, a lower US interest rate, and a lower expected...

Applying and extending the open-economy loanable funds model, this article shows that more government borrowing or debt as a percent of GDP leads to a higher government bond yield, that a higher real money market rate, a higher expected inflation rate, a higher EU government bond yield, or...