: Analysis of fundamental factors of the CBR’s exchange rate lay at the basis of this publication. The authors review papers which address problems of index construction of real effective exchange rate as well as models of evaluation of the real equilibrium exchange rate. They also analyze...

This paper examines the causal relationship between central bank intervention and exchange returns in India. Using monthly data from December 1997 to December 2011, the empirical results derived from the CCF approach of Cheung and Ng (1996) suggest that there is causality-in-variance from...

The integration within the Economic and Monetary Union requires the participation to the Exchange Rate Mechanism II (ERM II) and meeting the nominal convergence criteria set by the Maastricht treaty. Under these circumstances, it becomes crucial to establish the central parity upon entering ERM...

Starting from a new continuous-time non-linear dynamic model of the exchange rate, we formally show that the introduction of a Tobin tax reduces speculators’ prot and inuences the dynamics of the system making it more stable and less prone to chaotic motion.

The European Union was created to promote economic, cultural, and regional prosperity. However, the Global Financial Crisis demonstrates that its economic institutions are flawed. While each sovereign state in the Eurozone forfeits the control of its money supply, the lack of a common fiscal...

This paper analyzes the ex-ante short-term impacts of the Chinese RMB appreciation on the Chinese and world economy, using a novel approach of modeling nominal exchange rate adjustment in the GTAP, a global CGE model. Scenario results show that Chinese economy will be affected negatively, with...

This paper proposes a growth model of a small open economy with economic structure, flexible exchange rate, money policy and imported good. The model integrates the basic features of the Solow growth model, Uzawa’s two-sector model, the monetary growth model with the MIU approach, and the...

The main purpose of the study is to test the foreign exchange market efficiency for euro / Albanian leke during the period 01 January 2002 – 31 December 2012 in Albanian currency market. The results of this study include: 1. The informational efficiency is rejected for daily exchange rate euro...

We propose a new method called the multifractal asymmetric detrended cross-correlation analysis method (MF-ADCCA) to investigate the asymmetric cross-correlations in nonstationary time series that combine the multifractal detrended cross-correlation analysis (MF-DCCA) and asymmetric detrended...

In this paper, we analyze the traditional-revisionist debate on whether high interest rate can defend the downfall in currency values by allowing for asymmetric responses of exchange rate to positive and negative changes in the interest rate using Thailand data. Applying an EGARCH specification...