Analyses how the status of balance of payments follows se\ill\ fulfilling expectations of currency devaluation. It is found that before a currency devaluation, whether the economy w\ill\ experience a balance-of-payments surplus or deficit crucial depends on the degree of capital mobility.

This report presents the research initiative to explore an alternative methodology for extrapolating purchasing power parities (PPPs) for 21 participating economies in the Asia and Pacific region. The 2009 PPP Update provides an intermediate benchmark and more firmly based real expenditures and...

Controls on short-term capital inflows or panic-driven capital outflows may benefit emerging markets that have fragile financial sectors and adjustable-peg currency regimes. However, the controls seen so far are relatively easy to evade, often complex and obscure, and supported by large...

This paper examines the factors affecting the weekly peso/dollar exchange rate movements between 1999 and 2013 using an error correction model. The model fits the historical data well. While copper price is the most important determinant of the peso exchange rate over the long run, other factors...

During risk-off episodes, the yen is a safe haven currency and on average appreciates against the U.S. dollar. We investigate the proximate causes of yen risk-off appreciations. We find that neither capital inflows nor expectations of the future monetary policy stance can explain the yen’s...

The present study intends to describe and analyze recent trends in foreign exchange markets, specifically the United States Dollar and the Euro relations as well as the fundamentals behind monetary assets. It brings to light the relationship between economic variables and monetary policy as well...