Learn how overshooting impacts exchange rate volatility and why Dornbusch’s model is pivotal in explaining the short-term departure from price equilibrium.

This study examined the relationship between the Monetary Policy Rate (MPR) and inflation across five continents from 2014 to 2023 using both Frequentist and Bayesian Linear Mixed Models (LMM). It ...

Our Behavioural Equilibrium Exchange Rate (BEER) model estimates the real medium-term fair value of G10 currencies using productivity, terms of trades (the price of exports divided by the price of ...

We offer a unifying empirical model of covered and uncovered currency premia, interest rates and spot and forward exchange rates, both in the cross section and time series of currencies. We find that ...

This article introduces a new model called the buffered autoregressive model with generalized autoregressive conditional heteroscedasticity (BAR-GARCH). The proposed model, as an extension of the BAR ...

Controlling inflation is a key concern of central bankers around the world. But how best to control inflation differs across countries according to their individual characteristics; for example, small ...

With major central banks now cutting policy rates, the global interest rate cycle is turning. This shows how far the fight against inflation has come in many advanced economies. But with economic ...

The won-dollar exchange rate has surpassed the 1,450 Korean won mark and remains stubbornly high despite various government measures, including expanding the National Pension Service’s foreign ...