Morgan-Mercer-Flodin model for long term trend analysis of currency exchange rates of some selected countries

A.W. Wijeratne and J.A. Karunaratne

International Journal of Business Excellence, 2014, vol. 7, issue 1, 76-87

Abstract: The Morgan-Mercer-Flodin (MMF) model has been used in this research to establish the long-term trends in fluctuations of the Sri Lankan Rupee, Indian Rupee, Chinese Yuan and Japanese Yen (base currencies) to US Dollars (USD). Levenberg-Marquardt algorithm was used to estimate the parameters of the model that provide consistent indication to the level of economic growth of the respective countries. Then, the long-term equilibrium of each currency (base) to the USD provides sufficient evidence for the level of relative stability of each currency. In the case of the harshest negative repercussions for the economies from such exchange rate fluctuations, the need to take urgent and appropriate economic policy measures in order for mitigating those repercussions is recommended.

Keywords: MMF model; Levenberg-Marquardt algorithm; relative stability; currency exchange rates; exchange rate fluctuations; economic growth; currency stability; economic policy; India; China; Japan; Sri Lanka. (search for similar items in EconPapers)
Date: 2014
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.inderscience.com/link.php?id=57859 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ids:ijbexc:v:7:y:2014:i:1:p:76-87

Access Statistics for this article

More articles in International Journal of Business Excellence from Inderscience Enterprises Ltd
Bibliographic data for series maintained by Sarah Parker ().