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Nominal exchange rate flexibility and real exchange rate adjustment: New evidence from dual exchange rates in developing countries

โœ Scribed by Yin-Wong Cheung; Kon S. Lai


Book ID
113681342
Publisher
Elsevier Science
Year
2008
Tongue
English
Weight
449 KB
Volume
20
Category
Article
ISSN
0922-1425

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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