This paper compares the effectiveness of market discipline mechanisms in the banking sector before and after the 2001 financial crisis in Turkey. It employs an empirical model that incorporates the contemporaneous feedback effects between deposits growth rate and the implicit interest rate....

We examine a class of popular structural models of exchange rate determination and compare them to a random walk with and without drift. Given almost any set of conditioning variables, we find parametric specifications fail. Our findings are based on broad entropy functional of the whole...

In this paper, we use Google Trends data for exchange rate forecasting in the context of a broad literature review that ties the exchange rate movements with macroeconomic fundamentals. The sample covers 11 OECD countries' exchange rates for the period from January 2004 to June 2014. In...

By modeling the current account balances (as a percentage of GDP) in a dynamic AR (1) Model, Taylor (2002) proposed to use speed of mean reversion of the dynamics of the current account as a tool for measurement of capital mobility and confirmed the stylized fact of U-Shape degree of capital...

In Monte Carlo experiment with simulated data, we show that as a point forecast criterion, the Clark and West's (2006) unconditional test of mean squared prediction errors does not reflect the relative performance of a superior model over a relatively weaker one. The simulation results show that...