The current financial crisis followed the “great moderation,” according to which the world’s central banks had gotten so good at countercyclical policy that the business cycle no longer existed. As more and more economists and media people became convinced that the risk of recessions had...

This paper explores the disconnect of Federal Reserve data from index number theory. A consequence could have been the decreased systemic-risk misperceptions that contributed to excess risk taking prior to the housing bust. We find that most recessions in the past 50 years were preceded by more...

This article examined the exchange rate managements in the crisis-experienced emerging market economies after the 1990s. First, we found that the exchange rate flexibility has increased from the pre-crisis period towards the post-crisis period under the “soft peg” regime. Second, we...

This article examines the real exchange rate behavior during the pre-crisis and post-crisis periods in selected East Asian countries by verifying its long-run stability through unit root tests, and investigates the interaction among the component variables of the real exchange rate, i.e. the...

his article examined post-crisis exchange rate management in selected East Asian countries in terms of exchange rate regimes and targeting. The main findings from our empirical studies are as follows: As far as can be seen from the recent developments of exchange rate arrangements in countries...

This paper is the basis for the Guest Columnist article in the Tuesday, November 11, 2008 issue of the Kansas City Star newspaper's Business Weekly. Because of space limitations, the published newspaper column had to be shortened from the original and unfortunately did not include either of the...