Monetary model of exchange rate for Thailand : long-run relationship and monetary restrictions.
This paper examines the long-run relationship between exchange rate and its determinants based on the flexible-price monetary model. The multivariate cointegration approach is adopted to attain our objective of this study. The empirical results provide evidence favoring the monetary approach to exch...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English English |
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Routledge
2009
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| Online Access: | http://psasir.upm.edu.my/id/eprint/15719/1/Monetary%20model%20of%20exchange%20rate%20for%20Thailand.pdf |
| _version_ | 1825945675668389888 |
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| author | Liew, Venus Khim Sen Baharumshah, Ahmad Zubaidi Puah, Chin Hong |
| author_facet | Liew, Venus Khim Sen Baharumshah, Ahmad Zubaidi Puah, Chin Hong |
| author_sort | Liew, Venus Khim Sen |
| collection | UPM |
| description | This paper examines the long-run relationship between exchange rate and its determinants based on the flexible-price monetary model. The multivariate cointegration approach is adopted to attain our objective of this study. The empirical results provide evidence favoring the monetary approach to exchange rate for a small and open emerging economy, namely Thailand. In addition, the validity of the underlying assumptions of the monetary approach to the determination of exchange rate is established. The findings suggest that exchange rate players may effectively monitor and forecast the exchange rate movement via the money supplies, incomes, and interest rates variables of both Thailand and Japan. Besides, one has to follow the economic development of Thailand's major trading partner, Japan, to understanding the movement of exchange rate for Thailand. Moreover, our findings add new insights to accompany previous studies that documented the important influence of the US in the emerging Asian economies. |
| first_indexed | 2024-03-06T07:35:10Z |
| format | Article |
| id | upm.eprints-15719 |
| institution | Universiti Putra Malaysia |
| language | English English |
| last_indexed | 2024-03-06T07:35:10Z |
| publishDate | 2009 |
| publisher | Routledge |
| record_format | dspace |
| spelling | upm.eprints-157192015-10-05T07:10:35Z http://psasir.upm.edu.my/id/eprint/15719/ Monetary model of exchange rate for Thailand : long-run relationship and monetary restrictions. Liew, Venus Khim Sen Baharumshah, Ahmad Zubaidi Puah, Chin Hong This paper examines the long-run relationship between exchange rate and its determinants based on the flexible-price monetary model. The multivariate cointegration approach is adopted to attain our objective of this study. The empirical results provide evidence favoring the monetary approach to exchange rate for a small and open emerging economy, namely Thailand. In addition, the validity of the underlying assumptions of the monetary approach to the determination of exchange rate is established. The findings suggest that exchange rate players may effectively monitor and forecast the exchange rate movement via the money supplies, incomes, and interest rates variables of both Thailand and Japan. Besides, one has to follow the economic development of Thailand's major trading partner, Japan, to understanding the movement of exchange rate for Thailand. Moreover, our findings add new insights to accompany previous studies that documented the important influence of the US in the emerging Asian economies. Routledge 2009 Article PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/15719/1/Monetary%20model%20of%20exchange%20rate%20for%20Thailand.pdf Liew, Venus Khim Sen and Baharumshah, Ahmad Zubaidi and Puah, Chin Hong (2009) Monetary model of exchange rate for Thailand : long-run relationship and monetary restrictions. Global Economic Review, 38 (4). pp. 385-395. ISSN 1226-508X 10.1080/12265080903391784 English |
| spellingShingle | Liew, Venus Khim Sen Baharumshah, Ahmad Zubaidi Puah, Chin Hong Monetary model of exchange rate for Thailand : long-run relationship and monetary restrictions. |
| title | Monetary model of exchange rate for Thailand : long-run relationship and monetary restrictions. |
| title_full | Monetary model of exchange rate for Thailand : long-run relationship and monetary restrictions. |
| title_fullStr | Monetary model of exchange rate for Thailand : long-run relationship and monetary restrictions. |
| title_full_unstemmed | Monetary model of exchange rate for Thailand : long-run relationship and monetary restrictions. |
| title_short | Monetary model of exchange rate for Thailand : long-run relationship and monetary restrictions. |
| title_sort | monetary model of exchange rate for thailand long run relationship and monetary restrictions |
| url | http://psasir.upm.edu.my/id/eprint/15719/1/Monetary%20model%20of%20exchange%20rate%20for%20Thailand.pdf |
| work_keys_str_mv | AT liewvenuskhimsen monetarymodelofexchangerateforthailandlongrunrelationshipandmonetaryrestrictions AT baharumshahahmadzubaidi monetarymodelofexchangerateforthailandlongrunrelationshipandmonetaryrestrictions AT puahchinhong monetarymodelofexchangerateforthailandlongrunrelationshipandmonetaryrestrictions |