This paper expresses econometric qualms about M. D. Bordo and L. Jonung's (1981) analysis of long-run volocity. They did not recognize that, for U.S. and Canadian data, the log of velocity has a unit root. Hence, estimation of a log-level regression may produce spurious regressions. When Bordo...

This study tests whether changes in the short-term interest rate can best be modelled in a non-linear fashion. We argue that there are good theoretical and empirical reasons for adopting this strategy. Using monthly data from several industrialized countries, namely Canada, Germany, Sweden,...

This paper reexamines the findings of George S. Alogoskoufis and Ron Smith (1991), who argue that sharp increases in inflation persistence can be attributed to changes in the exchange rate regime. Using long time series data from the United Kingdom, the United States, Canada, and Sweden, the...

This paper examines past evidence of prolonged periods of foreign exchange reserves accumulation in the Asia-Pacific region. One empirical challenge is to identify periods of reserve accumulation that are sufficiently large and persistent to be categorised as prolonged. Several proxies for...

This paper demonstrates that the monetary policy of the National Bank of Hungary is restrictive and has ignored the liquidity problems raised by the overhang of inter-enterprise liquidity. The implication is that the success of the transition to market is thereby jeopardized.

The rational expectations approach to macroeconomics suggests that hyperinflations were ended abruptly without significant output or unemployment costs. Using new evidence, the author finds that, while transition costs did take place following the Hungarian hyperinflation of 1945-46, they were...