In post-crisis Asia, all crisis-hit countries (except Malaysia) announced a shift from exchange rate based monetary policy framework to the explicit adoption of inflation targeting that uses interest rates as the key monetary policy operating instrument. In this study, we examine the empirical...

The purpose of this article is to analyze the effects of Romania's macroeconomic variables of the loan portfolio quality of the banking sector. Specifically, the study seeks to emphasize the interdependent macroeconomic elements that influence the evolution of credit portfolio quality for...

For the chaotic systems, the fact that they are deterministic does not make them predictable. However, the predictive power in the case of chaotic systems can be improved and this can be illustrated by weather system for which predictions for short periods have reached to a very good accuracy. A...

Given the recent redesigned path of our country to join the Euro area, the economic objectives of macroeconomic stability become fundamental, especially in the current financial crisis frame. Recession, that probably it would be statistically disclosed for 2012, will "destabilize", once more,...

The recent exchange rate fluctuations in India have been a matter of concern for the policymakers and general public. The current exchange rate regime in India, known as managed float, has evolved through a long process of searching for an appropriate policy regime for India. Since exchange...

International trade promotes economic development and leads to peace and stability in a country. Political instability affects trade through its direct effect on income and prices and indirectly through its influence on investment in physical capital. This study aims to examine the impact of...

In this paper we study, using the sup LR test, the possibility of discrimination between two classes of models: the Markov switching models of Hamilton (1989) and the Threshold Auto-Regressive Models (TAR) of Lim and Tong (1980). This work is motivated by the fact that generally practicians use,...

As an extension of the article by Núñez, De la Cruz and Ortega (2007), different parametric models with jumps are tested with the methodology developed by Ait-Sahalia and Peng (2006), based on the transition function. Data analyzed are the peso-dollar exchange rate. The idea is to implement...

Purpose– The authors make assessment on RMB valuation and to contribute to the fierce debate on this important issue, which is perceived to have a great effect on the improvement or deterioration in trade balance. A triangular analysis approach is put forward and empirical assessment is made....