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Intervention and Exchange Rate Stabilization Policy in Developing Countries

✍ Scribed by Michael M. Hutchison

Book ID
108564031
Publisher
John Wiley and Sons
Year
2003
Tongue
English
Weight
107 KB
Volume
6
Category
Article
ISSN
1367-0271

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## Abstract As the real exchange rate of developing countries is especially vulnerable to stochastic events, standard unit root tests do not capture such events adequately. Using a Markov switching extension of the ADF test, which incorporates stochastic regime switching, we address the issue of re