A vector error-correction model (VECM) is estimated to examine the relationship among interest rates, monetary base, credit claims to the private sector, real income, prices, government spending, budget deficits and exchange rate in Jamaica. Cointegration is used to identify the VECM. The...

The Peso crisis is examined by using the exchange market pressure model (EMP) over the period 1971:1 - 1995:4. Different estimators are used to obtain robust results. Empirical findings indicate that an increase in domestic credit, crisis dummy and inflation rates leads to outflows of foreign...