The main objective of this paper is to investigate the effects of monetary regime (countries with inflation targeting monetary policy versus countries with exchange rate anchor) on the extent of exchange rate pass-through over the period of 1999-2010. To achieve this objective, the econometric model has been estimated by Dynamic Panel Data approach and Arrelano- Bond (AB) method. The empirical...

abstract:this study examines the significant impact of exchange rate shock on prices of malaysian importsand exports. in methodology, the study adopts vector error correction (vecm) model using monthlydata of nominal exchange rates, money supply, prices of imports and prices of exports covering theperiod of m1:1999 to m12:2006. for further analysis, we adopt an innovation accounting bysimulatin...

Making capital and investment is the main driving forces of economic development. Based on the investment sensitivity to the changes of some of macro-economic variables and risk and uncertainty, the present study evaluated the effective factors on investment in private sector in Iran during 1980-2007. At first, the uncertainty variables of real informal exchange rate, nominal interest rate and ...

This paper examines the effects of selected macroeconomic variables on the stock market index in Iran. Using quarterly data, we examine the relationships between the Tehran Stock Index (TSI) and five macroeconomic variables which consist of gross domestic product, nominal effective exchange rate, money supply, gold coin price and investment in housing sector from 1996:1 to 2008:1.Various e...

Convertibility is an important factor in international trade where instruments valued in different currencies will be exchanged. Convertibility can be either total manner or a partial manner. However, whatever the type of convertibility, there will be advantages and disadvantages to  the economy of a country of which has  made a convertibility of its national currency. Convertibility was studie...

The purchasing power parity puzzle relates to the adjustment of real exchange rates. Real exchange rates are extremely volatile, suggesting that temporary shocks emanate from the monetary sector. But the half-life of real exchange rate deviations is extremely large – 2.5 to 5 years. This halflife seems too large to be explained by the slow adjustment of nominal prices. We offer a different inte...

this study examined the effects of trade liberalization and exchange rate changes on carbohydrate staples in nigeria. secondary data published from 1974 to 2006 on cassava exports and rice imports as well as non-tradable carbohydrate staples were used. it was hypothesized that exchange rate changes and trade liberalization via price relatives, trade intensity and nominal protection coefficient ...