Helble, Matthias; Prasetyo, Ahmad; Yoshino, Naoyuki - 2015
fluctuations in gross domestic product (GDP) and in exchange rates to a minimum. We add to the literature by explicitly modeling … of their exchange rates, their GDP and their balance of trade. We find that Pacific DMCs with external currencies … exchange rates, rather than those of their GDP. Our model therefore provides valuable guidance for those monetary authorities …