Exchange Rate Economics: Issues, Regime Choice and Modelling
M. Rusydi and
Sardar M. N. Islam
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M. Rusydi: Deakin University
Sardar M. N. Islam: Victoria University
Chapter 2 in Quantitative Exchange Rate Economics in Developing Countries, 2007, pp 16-33 from Palgrave Macmillan
Abstract:
Abstract The issues of exchange rate determination have long been a subject of research and policy making, especially since the collapse of the Bretton Woods arrangement. Today the foreign exchange rate markets are extremely unpredictable and susceptible to fundamental economic factors and market sentiments. The high degree of unpredictability and uncertainty of exchange rate movements since the introduction of the flexible exchange rate in 1973 have led policy makers and researchers to investigate the nature and the impact of such movements on the exchange rate determination.
Keywords: Exchange Rate; Monetary Policy; Central Bank; Real Exchange Rate; Purchasing Power Parity (search for similar items in EconPapers)
Date: 2007
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-0-230-59248-3_2
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DOI: 10.1057/9780230592483_2
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