Since the 1980s, many regional agreements have appeared to facilitate trade and spur economic growth. This paper examines whether or not the purchasing power parity (PPP) hypothesis for regional agreements has been satisfied. This study employs a nonlinear unit root test for real exchange rates...

Because the European Central Bank's current goal is to achieve stable prices, some EU countries have adopted direct inflation control as a target of financial policy. Several other countries, however, have adopted other targets, such as money supply targeting, exchange rate targeting, and other...

Purpose – This paper, using daily data, sets out to present an empirical analysis of the relationship between recent Japanese stock prices and macroeconomic variables under the quantitative easing policy in Japan. Design/methodology/approach – The theoretical framework of the analysis is...

This paper estimates the effect that the APEC 'currency union', loosely defined, has on trade and, via trade, on output per capita. A gravity model is used to measure the impact of exchange-rate variability on trade flows within APEC. The gain in trade flows from eliminating nominal...

Corporate governance in Japan is now undergoing dramatic changes. A set of global standards for corporate governance has been advocated. For example, OECD complied guidelines on corporate governance in 1998 and 1999. Corporate governance measures are increasingly being paid attention to, and not...

The European Monetary System experienced pressure on exchange rates, which led toa devaluation or a subsequent widening of bands of EMS currencies. In this paper the source(s) of pressure on the exchange rate are identified. Currency crises were caused by fundamentals in 1992; however, they were...

Because the European Central Bank's current goal is to achieve stable prices, some EU countries have adopted direct inflation control as a target of financial policy. Several other countries, however, have adopted other targets, such as money supply targeting, exchange rate targeting, and other...

Purpose – The purpose of this article is to analyse methods for determination of exchange rates in response to fundamental economic variables and changes in monetary policies. Design/methodology/approach – The paper undertakes empirical examination of exchange rate movements and their...

This article focuses on the empirical relationship between the United States’ and Japan’s yield spread of interest rates and economic growth in Japan. The yield spread is defined in this article as the difference between the Japanese government bond yield minus the US government bond yield....