In this era of new revolution of globalization and trade liberalization, exchange rates (ER) are one of the fundamental factors in international trade. This research focus on the determinants of trade i.e. Import, export, industrial growth, consumption level and oil prices fluctuation brings...

Consumption is positively correlated with disposable income, due to higher oil prices a fall in disposable income will decreases consumption and production and adverse impact on growth. If investment decisions are concerned increase in oil prices will increase cost of production and lowers...

Affect of increase and decrease in balance of trade is observed in determination of balance of payments of country. Balance of payment and exchange rate has significant relationship with each other. This research investigates that the determinants of trade i.e. Import, export, industrial growth,...

For a small open economy of Pakistan, exchange rate is determined through the two alternative theories; the nominal theory of exchange rate named by Purchasing Power Parity (PPP) and the real theory known as Harrod Balassa Sameulson (HBS). According to the requirements of theories, two kinds of...

Through a structural vector error correction model, one restricted cointegrating relationship for monthly data (1999.01–2012.04) was found between three exchange parities of great relevance for the Mexican economy: US Dollar–Euro, Mexican Peso–US Dollar, and Mexican Peso–Euro. The data's...

This paper investigates the temporal links between two models of equilibrium exchange rate, namely the behavioral and the fundamental approaches. Our results show that, even though in the long-run they are closely related, important differences are observed for some countries and/or some...

This paper explores the co-movement of Shanghai stock market and China Yuan (CNY) exchange rates. First, we find that stock price and exchange rate are significantly cross-correlated. Second, employing a cointegration test allowing for a structural break, we find that the Shanghai Composite...

Gang Yi—Deputy Governor and Administrator, State Administration of Foreign Exchange (SAFE), People's Bank of China—returned to Indiana University-Purdue University Indianapolis (IUPUI)—where he was awarded an honorary degree. Following are remarks and a lecture on the Chinese economy he...

The adaptive markets hypothesis posits that trading strategies evolve as traders adapt their behavior to changing circumstances. This paper studies the evolution of trading strategies for a hypothetical trader who chooses portfolios from foreign exchange (forex) technical rules in major and...