On Singaporean Dollar-U.S. Dollar and Purchasing Power Parity
This study re-examines the validity of relationship between Singapore Dollar-US Dollar exchange rate and the relative price using the latest econometric methodologies that accounts for non-linearity. Among others, this study finds Exponential Smooth Transition Autoregressive (ESTAR)-type non-linear...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
World Scientific Publishing Co. Pte. Ltd.
2004
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| Subjects: | |
| Online Access: | http://ir.unimas.my/id/eprint/18604/ http://ir.unimas.my/id/eprint/18604/1/On%20Singaporean.pdf |
| _version_ | 1848838547832832000 |
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| author | Liew, Venus Khim-Sen Ahmad Zubaidi, Baharumshah Lim, Kian-Ping |
| author_facet | Liew, Venus Khim-Sen Ahmad Zubaidi, Baharumshah Lim, Kian-Ping |
| author_sort | Liew, Venus Khim-Sen |
| building | UNIMAS Institutional Repository |
| collection | Online Access |
| description | This study re-examines the validity of relationship between Singapore Dollar-US Dollar exchange rate and the relative price using the latest econometric methodologies that accounts
for non-linearity. Among others, this study finds Exponential Smooth Transition Autoregressive (ESTAR)-type non-linear mean-reverting adjustment process of the nominal Singapore dollar-US dollar rate towards consumer price index ratio. Unlike previous finding of linear cointegration relationship between nominal Singapore Dollar-US Dollar exchange rate and consumer price index ratio, this study shows that the relationship is in fact non-linear in nature. The major economic implications of our findings includes: (1) Policy makers need to take non-linearity into consideration on their policy decision; (2) Monetary Authority of Singapore (MAS) is able to maintain the macroeconomic equilibrium albeit the authority’s strong dollar policy; and (3) One should keep track on Singapore monetary policy and other innovations in aggregate demand in order to closely monitor the movement of Singapore exchange rate. |
| first_indexed | 2025-11-15T06:57:18Z |
| format | Article |
| id | unimas-18604 |
| institution | Universiti Malaysia Sarawak |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T06:57:18Z |
| publishDate | 2004 |
| publisher | World Scientific Publishing Co. Pte. Ltd. |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | unimas-186042022-01-19T04:16:34Z http://ir.unimas.my/id/eprint/18604/ On Singaporean Dollar-U.S. Dollar and Purchasing Power Parity Liew, Venus Khim-Sen Ahmad Zubaidi, Baharumshah Lim, Kian-Ping HB Economic Theory This study re-examines the validity of relationship between Singapore Dollar-US Dollar exchange rate and the relative price using the latest econometric methodologies that accounts for non-linearity. Among others, this study finds Exponential Smooth Transition Autoregressive (ESTAR)-type non-linear mean-reverting adjustment process of the nominal Singapore dollar-US dollar rate towards consumer price index ratio. Unlike previous finding of linear cointegration relationship between nominal Singapore Dollar-US Dollar exchange rate and consumer price index ratio, this study shows that the relationship is in fact non-linear in nature. The major economic implications of our findings includes: (1) Policy makers need to take non-linearity into consideration on their policy decision; (2) Monetary Authority of Singapore (MAS) is able to maintain the macroeconomic equilibrium albeit the authority’s strong dollar policy; and (3) One should keep track on Singapore monetary policy and other innovations in aggregate demand in order to closely monitor the movement of Singapore exchange rate. World Scientific Publishing Co. Pte. Ltd. 2004-09-01 Article PeerReviewed text en http://ir.unimas.my/id/eprint/18604/1/On%20Singaporean.pdf Liew, Venus Khim-Sen and Ahmad Zubaidi, Baharumshah and Lim, Kian-Ping (2004) On Singaporean Dollar-U.S. Dollar and Purchasing Power Parity. The Singapore Economic Review, 49 (1). pp. 1-14. ISSN 0217-5908 (print) http://www.worldscientific.com/worldscinet/ser |
| spellingShingle | HB Economic Theory Liew, Venus Khim-Sen Ahmad Zubaidi, Baharumshah Lim, Kian-Ping On Singaporean Dollar-U.S. Dollar and Purchasing Power Parity |
| title | On Singaporean Dollar-U.S. Dollar and Purchasing Power Parity |
| title_full | On Singaporean Dollar-U.S. Dollar and Purchasing Power Parity |
| title_fullStr | On Singaporean Dollar-U.S. Dollar and Purchasing Power Parity |
| title_full_unstemmed | On Singaporean Dollar-U.S. Dollar and Purchasing Power Parity |
| title_short | On Singaporean Dollar-U.S. Dollar and Purchasing Power Parity |
| title_sort | on singaporean dollar-u.s. dollar and purchasing power parity |
| topic | HB Economic Theory |
| url | http://ir.unimas.my/id/eprint/18604/ http://ir.unimas.my/id/eprint/18604/ http://ir.unimas.my/id/eprint/18604/1/On%20Singaporean.pdf |