In recent years, analysts and policy makers alike have been evaluating the nexus between exchange rates and macroeconomic stability. Among the most important questions asked is why have some countries adopted rigid, including fixed, exchange-rate regimes, while others have opted for more flexible systems? This paper addresses this question from a political economy perspective, both theoreticall...

This study aims to investigate the relationship between Food Security and Exchange Rate in Pakistan. The Augmented Dicky Fuller Zivot Andrew tests of stationarity ARDL approach cointegration have been used. Gregory Hansen test is applied confirm Bounds Test outcomes presence Structural Breaks series. In Pakistan, has a significant deleterious influence on long run. For GDP growth, Arable Land A...

This paper studies the sources of economic fluctuations and their implications for exchange rate regime choice in key Latin American countries. In general, external shocks play a limited role in driving output fluctuations in these countries; this absence of common business cycles undermines the case for fixed exchange rates. On the other hand, although there is some evidence that real exchange...

When the exchange rate is either fixed or floating, the currency trading of the central bank is relatively well understood. In intermediate regimes, or ‘dirty floats’, three different alternative behaviours of the central bank can be conjectured: symmetrically preventing changes of the exchange rate vs. preventing appreciation vs. preventing depreciation. In this paper, we describe a testing st...

of ten Central and Eastern European transition economies as well as its indirect impact via changes in exchange rate regimes. Not only aggregate but also bilateral and sectoral export flows are studied. To this end, we first analyze shifts in exchange rate volatility linked to changes in the exchange rate regimes and second, use these changes to construct dummy variables we include in our expor...

This paper analyzes the role of real exchange rate in determining Japanese FDI in China. Using the data of Japanese direct investment in China’s nine major manufacturing sectors from 1989 to 2000, the paper conducts regression analysis with both time series and panel data. The empirical results show that there exists a significantly positive correlation between the bilateral real exchange rate ...