In this chapter, we analysing and forecasting the New Taiwanese Dollar against the US dollar. Forecasting models were tested using the three variables; exchange rate, money supply and Balance Remittance. Both VAR and VARMA models accurately predicted turning points and no false fluctuations were...

In this chapter, economic forecasting techniques were used to forecast the exchange rate of the New Taiwan (N.T.) dollar, given that there is a tolerable amount of favourable trade balance between Taiwan and the US. To test this monthly data for the economic variables; Taiwanese exchange rate...

In this chapter, the hypotheses of purchasing power parity (PPP) and market efficiency are tested for the bilateral exchange rate between the New Taiwan (N.T.) and the US dollar. Different test results lead to the conclusion that, a PPP relationship over the long term cannot be rejected...