This paper revisits the issue of the optimal exchange rate regime in a flexible price environment. The key innovation is that we analyze this question in the context of environments where only a fraction of agents participate in asset market transactions (i.e., asset markets are segmented)....

Steel is a material which is in line with sustainable development as it can be recycled over and over again. Steel Industries believe that the sustainability through balanced development of society, environment and economy contributes to the heightened corporate value and ultimately enhances the...

Steel is a material which is in line with sustainable development as it can be recycled over and over again. Steel Industries believe that the sustainability through balanced development of society, environment and economy contributes to the heightened corporate value and ultimately enhances the...

The authors consider a family of rank tests based on the regression rank score process introduced by C. Gutenbrunner and J. Jureckova (1992) to test the unit root hypothesis in economic time series. In contrast to tests based on least-squares methods, the rank tests are asymptotically Gaussian...

The Fisherian theory of interest asserts that a fully perceived change in inflation would be reflected in nominal interest rates and stock returns in the same direction in the long run. This paper examines the Fisherian hypothesis of asset returns using alternative techniques of linear...

This paper estimates time-varying optimal hedge ratios (OHRs) using a bivariate generalized autoregressive conditional heteroscedastic (GARCH) error correction model. The GARCH specification accounts for time-varying distribution in asset returns while the error correction term preserves...

This study empirically examines the Purchasing Power Parity hypothesis using more than a century span of annual data of Australia, Canada and Britain and a battery of unit root tests. The study finds support for the validity of the Purchasing Power Parity hypothesis in the long-run within the...

This paper empirically investigates the demand for international reserves (and foreign exchange reserves) during fixed and floating exchange rates periods in three developing countries: Kenya, Mexico and Philippines. Based on theoretical models, three factors are identified as important for the...