Purpose – This study seeks to explore the nature of a data-generating process for four dollar exchange rates. Design/methodology/approach – Using a discrete parametric modeling approach, an efficient test statistic was computed for nonlinearity in terms of variance of the residuals of the...

Purpose – This paper aims to critically examine China's exchange rate policy debate and discuss Chinese financial and capital control reform of recent years. Furthermore, using the empirical results based on a regional general equilibrium model, alternative methods are suggested of addressing...

Purpose – This paper aims to critically examine China's exchange rate policy debate and discuss Chinese financial and capital control reform of recent years. Furthermore, using the empirical results based on a regional general equilibrium model, alternative methods are suggested of addressing...

Purpose – This study seeks to explore the nature of a data‐generating process for four dollar exchange rates. Design/methodology/approach – Using a discrete parametric modeling approach, an efficient test statistic was computed for nonlinearity in terms of variance of the residuals of the...

Two series, German mark/US dollar exchange rate and US consumer price index, are tested to illustrate if nonlinear noise reduction could help to improve prediction. Three nonlinear noise reduction methods, local projective (LP), singular value decomposition (SVD) and simple nonlinear filtering...

The methodologies and assumptions in financial integration studies are problematic and may lead to spurious empirical results. Using surrogate data analysis and the mutual prediction method of testing for nonlinear interdependence, it is feasible for an analyst, with a scant knowledge of the...