ASEAN-5 Exchange Rate Determination In The Presence Of Nonlinearity

This study finds that nominal exchange rate exhibits nonlinear long-run relationship with money supplies and aggregate outputs, in the context of ASEAN-5 countries, thereby validating the monetary model of exchange rate. While it is consistent with the earlier findings using the linear testing proce...

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Main Authors: Venus Liew, Khim Sen, Ahmad Zubaidi, Baharumshah, Muzafar Shah, Habibullah, Habshah, Midi
Format: Article
Language:English
Published: Serials Publications 2011
Subjects:
Online Access:http://ir.unimas.my/id/eprint/18606/
http://ir.unimas.my/id/eprint/18606/7/ASEAN-5%20EXCHANGE%20RATE%20DETERMINATION%20%28abstract%29.pdf
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author Venus Liew, Khim Sen
Ahmad Zubaidi, Baharumshah
Muzafar Shah, Habibullah
Habshah, Midi
author_facet Venus Liew, Khim Sen
Ahmad Zubaidi, Baharumshah
Muzafar Shah, Habibullah
Habshah, Midi
author_sort Venus Liew, Khim Sen
building UNIMAS Institutional Repository
collection Online Access
description This study finds that nominal exchange rate exhibits nonlinear long-run relationship with money supplies and aggregate outputs, in the context of ASEAN-5 countries, thereby validating the monetary model of exchange rate. While it is consistent with the earlier findings using the linear testing procedures in this region, the current evidence of nonlinear relationship provides insightful information in explaining why nominal exchange rate misalignments can sometimes be persistent in the short-run. With regard to the monitoring of exchange rates in these countries, policy makers could focus on the set of monetary variables, which have been shown well-coordinated with the dynamic of exchange rates in this study.
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publishDate 2011
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spelling unimas-186062023-06-14T03:01:56Z http://ir.unimas.my/id/eprint/18606/ ASEAN-5 Exchange Rate Determination In The Presence Of Nonlinearity Venus Liew, Khim Sen Ahmad Zubaidi, Baharumshah Muzafar Shah, Habibullah Habshah, Midi HB Economic Theory This study finds that nominal exchange rate exhibits nonlinear long-run relationship with money supplies and aggregate outputs, in the context of ASEAN-5 countries, thereby validating the monetary model of exchange rate. While it is consistent with the earlier findings using the linear testing procedures in this region, the current evidence of nonlinear relationship provides insightful information in explaining why nominal exchange rate misalignments can sometimes be persistent in the short-run. With regard to the monitoring of exchange rates in these countries, policy makers could focus on the set of monetary variables, which have been shown well-coordinated with the dynamic of exchange rates in this study. Serials Publications 2011 Article PeerReviewed text en http://ir.unimas.my/id/eprint/18606/7/ASEAN-5%20EXCHANGE%20RATE%20DETERMINATION%20%28abstract%29.pdf Venus Liew, Khim Sen and Ahmad Zubaidi, Baharumshah and Muzafar Shah, Habibullah and Habshah, Midi (2011) ASEAN-5 Exchange Rate Determination In The Presence Of Nonlinearity. Journal of International Economic Review, 4 (1). pp. 1-11. ISSN 0975-2080 https://serialsjournals.com/index.php?route=product/product&path=51&product_id=438
spellingShingle HB Economic Theory
Venus Liew, Khim Sen
Ahmad Zubaidi, Baharumshah
Muzafar Shah, Habibullah
Habshah, Midi
ASEAN-5 Exchange Rate Determination In The Presence Of Nonlinearity
title ASEAN-5 Exchange Rate Determination In The Presence Of Nonlinearity
title_full ASEAN-5 Exchange Rate Determination In The Presence Of Nonlinearity
title_fullStr ASEAN-5 Exchange Rate Determination In The Presence Of Nonlinearity
title_full_unstemmed ASEAN-5 Exchange Rate Determination In The Presence Of Nonlinearity
title_short ASEAN-5 Exchange Rate Determination In The Presence Of Nonlinearity
title_sort asean-5 exchange rate determination in the presence of nonlinearity
topic HB Economic Theory
url http://ir.unimas.my/id/eprint/18606/
http://ir.unimas.my/id/eprint/18606/
http://ir.unimas.my/id/eprint/18606/7/ASEAN-5%20EXCHANGE%20RATE%20DETERMINATION%20%28abstract%29.pdf