The Economics of Exchange Rates in the East Asian Countries.

Prof. Dr., Ahamd Zubaidi Baharumshah (2002) The Economics of Exchange Rates in the East Asian Countries.

[img] PDF
17Mb

Abstract

The recent theoretical and empirical research in international macroeconomics has reestablished the hypothesis of purchasing power parity (PPP) as a long run relationship. This paper highlights some of the difficulties that economist’s had over the past two decades in validating the PPP doctrines. The emphasis is on the exchange rates of the emerging markets of the East Asian economies. This paper argues that with careful application of the nonstationarity time series method, this simple exchange rate and its fundamental variables as techniques that properly capture the dynamic data generating processes of the macroeconomic variables (exchanges rates, current account interest rates, inflation, etc.) are developed. In this paper, the statistical results from the monetary model and its variants are examined to show whether these structural models can replicate the salient features of the exchange rate behavior in the emerging market economics. The focus is on what is predictable and why earlier attempts to model exchange rates failed to produce good forecasts. There is now a growing evidence to suggest that linear models are not always the optimal forecast for the exchange rates.

Item Type:Inaugural Lecture
Corporate Creators:Universiti Putra Malaysia
ID Code:1101
Deposited By: Muizzudin Kaspol
Deposited On:01 Jun 2009 04:33
Last Modified:27 May 2013 06:52

Repository Staff Only: item control page

Document Download Statistics

This item has been downloaded for since 01 Jun 2009 04:33.

View statistics for "The Economics of Exchange Rates in the East Asian Countries."


Universiti Putra Malaysia Institutional Repository

Universiti Putra Malaysia Institutional Repository is an on-line digital archive that serves as a central collection and storage of scientific information and research at the Universiti Putra Malaysia.

Currently, the collections deposited in the IR consists of Master and PhD theses, Master and PhD Project Report, Journal Articles, Journal Bulletins, Conference Papers, UPM News, Newspaper Cuttings, Patents and Inaugural Lectures.

As the policy of the university does not permit users to view thesis in full text, access is only given to the first 24 pages only.