... flows in the EU also depend on market size and the real exchange rate (as a ... years and, es... more ... flows in the EU also depend on market size and the real exchange rate (as a ... years and, especially, during the latter part of the 1980s, foreign direct investment (FDI) in ... This significant increase has been attributed to globalization strategies of US and Japanese corporations, the ...
We argue that the interactions among the current account and budget balances and the real interes... more We argue that the interactions among the current account and budget balances and the real interest rate can provide more information about the effective degree of financial openness of an economy than simple saving-investment correlations. Cointegration tests reveal a variety of linkages between the variables across countries. A number of economies (Canada, Germany, Netherlands, and increasingly the UK) appear to be small and open, while Japan and the USA are effectively closed. The "twin deficits" and "current account targeting" hypotheses receive some support in the short run.
Abstract: - We examine,the relationship between,inflation and inflation uncertainty in the US usi... more Abstract: - We examine,the relationship between,inflation and inflation uncertainty in the US using a GARCH model,that allows for simultaneous,feedback,between,the conditional mean and variance of inflation. We also compare,the properties of the observed,time series with the theoretical properties of GARCH models,to illustrate how theoretical results on the correlation structure can facilitate model,identification. In agreement,with the predictions of economic theory, we find
We investigate the behavior of real exchange rates of six East-Asia countries in relation to thei... more We investigate the behavior of real exchange rates of six East-Asia countries in relation to their two major trading partners – the US and Japan. These countries, Singapore excepted, were affected by the financial crisis of the fall 1997. Using monthly frequency data from 1976 to 2002 and the ARDL cointegration procedure we test for the long-run PPP hypothesis. We
... 24, No. 1, 1997) No. 6 September 1995 Stilianos Fountas, Breda Lally and Jyh-Lin Wu The Relat... more ... 24, No. 1, 1997) No. 6 September 1995 Stilianos Fountas, Breda Lally and Jyh-Lin Wu The Relationship Between Inflation and Wage Growth in the Irish Economy No. 7 November 1995 Eamon O'Shea and Brendan Kennelly Caring and Theories of Welfare Economics ...
This paper examines the sustainability of the current account imbalance for four ASEAN countries ... more This paper examines the sustainability of the current account imbalance for four ASEAN countries (Indonesia, Malaysia, the Philippines, and Thailand) over the 1961–1999 period. To this end, we utilize the intertemporal budget constraint (IBC) model to explain the behavior of the current account in these countries. The analysis is based on various unit root and cointegration procedures including those allowing for a structural break to deal with the major shortcomings of previous studies. The empirical results indicate clearly that for all ...
ABSTRACT The objective of this paper is to determine whether ERM-participating countries have exp... more ABSTRACT The objective of this paper is to determine whether ERM-participating countries have experienced a change in the effectiveness of monetary and fiscal policies since the establishment of the ERM. Countries which have come to rely more heavily on fiscal policy instruments as the means of output, price and exchange rate stabilization since the establishment of the ERM (and currently exceed the fiscal criteria) are expected to find the Maastricht fiscal criteria restrictive and perhaps destabilizing. We find that Belgium, Italy and Ireland are the countries that are likely to face the most difficulties. Copyright Kluwer Academic Publishers 1997
... flows in the EU also depend on market size and the real exchange rate (as a ... years and, es... more ... flows in the EU also depend on market size and the real exchange rate (as a ... years and, especially, during the latter part of the 1980s, foreign direct investment (FDI) in ... This significant increase has been attributed to globalization strategies of US and Japanese corporations, the ...
We argue that the interactions among the current account and budget balances and the real interes... more We argue that the interactions among the current account and budget balances and the real interest rate can provide more information about the effective degree of financial openness of an economy than simple saving-investment correlations. Cointegration tests reveal a variety of linkages between the variables across countries. A number of economies (Canada, Germany, Netherlands, and increasingly the UK) appear to be small and open, while Japan and the USA are effectively closed. The "twin deficits" and "current account targeting" hypotheses receive some support in the short run.
Abstract: - We examine,the relationship between,inflation and inflation uncertainty in the US usi... more Abstract: - We examine,the relationship between,inflation and inflation uncertainty in the US using a GARCH model,that allows for simultaneous,feedback,between,the conditional mean and variance of inflation. We also compare,the properties of the observed,time series with the theoretical properties of GARCH models,to illustrate how theoretical results on the correlation structure can facilitate model,identification. In agreement,with the predictions of economic theory, we find
We investigate the behavior of real exchange rates of six East-Asia countries in relation to thei... more We investigate the behavior of real exchange rates of six East-Asia countries in relation to their two major trading partners – the US and Japan. These countries, Singapore excepted, were affected by the financial crisis of the fall 1997. Using monthly frequency data from 1976 to 2002 and the ARDL cointegration procedure we test for the long-run PPP hypothesis. We
... 24, No. 1, 1997) No. 6 September 1995 Stilianos Fountas, Breda Lally and Jyh-Lin Wu The Relat... more ... 24, No. 1, 1997) No. 6 September 1995 Stilianos Fountas, Breda Lally and Jyh-Lin Wu The Relationship Between Inflation and Wage Growth in the Irish Economy No. 7 November 1995 Eamon O'Shea and Brendan Kennelly Caring and Theories of Welfare Economics ...
This paper examines the sustainability of the current account imbalance for four ASEAN countries ... more This paper examines the sustainability of the current account imbalance for four ASEAN countries (Indonesia, Malaysia, the Philippines, and Thailand) over the 1961–1999 period. To this end, we utilize the intertemporal budget constraint (IBC) model to explain the behavior of the current account in these countries. The analysis is based on various unit root and cointegration procedures including those allowing for a structural break to deal with the major shortcomings of previous studies. The empirical results indicate clearly that for all ...
ABSTRACT The objective of this paper is to determine whether ERM-participating countries have exp... more ABSTRACT The objective of this paper is to determine whether ERM-participating countries have experienced a change in the effectiveness of monetary and fiscal policies since the establishment of the ERM. Countries which have come to rely more heavily on fiscal policy instruments as the means of output, price and exchange rate stabilization since the establishment of the ERM (and currently exceed the fiscal criteria) are expected to find the Maastricht fiscal criteria restrictive and perhaps destabilizing. We find that Belgium, Italy and Ireland are the countries that are likely to face the most difficulties. Copyright Kluwer Academic Publishers 1997
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