The purpose of this study is to analyze the exposure specific exchange rate sectors due changes in regimes. To evaluate and consequence policy change, two models were used. data was from Malaysian listed firms' stock returns foreign rates. secondary 128 firms chosen using Bloomberg database Bursa Malaysia. firm’s price rates collected January 1990 July 2010. 20 years specifically obtain regime ...

This paper demonstrates the importance of allowing for regime switching when investigating the behavior of the parallel market premium. Regime switching techniques are used to examine the credibility of a ...xed exchange regime in economies with widespread parallel markets for foreign currency. Markov regime switching techniques used in this paper were developed in Hamilton (1989), Gray (1996) ...

Devaluation has different effects on the structure of trade patterns in countries which have a fixed exchange rate regime. The experience of devaluation in many countries has clearly shown that devaluation policies have not always led to the improvement of their trade pattern structures. Some empirical studies have revealed that after employing devaluation, the real rate of money in some nation...

In this study a regime switching approach is applied to estimate the chartist and fundamentalist (c&f) exchange rate model originally proposed by Frankel and Froot (1986). The empirical results suggest that this model does successfully explain daily DM/Dollar forward exchange rate dynamics from 1982 to 1998. Moreover, our findings turned out to be relative robust by estimating the model in subs...