This article applies the panel data unit root tests provided by Im, Pesaran and Shin (Discussion paper, 1997) to examine the interest rate convergence of small-open Asian countries with major financial centres. With monthly data from 1988:1 to 1997:6, it was found that the nominal interest rates...

We modify the conventional money demand function by including a real exchange rate variable to reflect the effect of currency substitution. Empirical evidence indicates that the variable is crucial to the long-run stability of Taiwan's money demand. After finding the failure of a linear...

High-performing Asian economies are quite distinctive with efficient, flexible and responsive labour markets. Comparing the persistence of unemployment in East Asian economies to that in Western countries is difficult due to the data's short time spans and possible structural breaks. This...