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1 – 10 of over 105000Zelealem Yiheyis and Jacob Musila
The purpose of this study is to examine the temporal relationships between inflation and exchange rate changes and their implications for the trade balance in Uganda, which saw…
Abstract
Purpose
The purpose of this study is to examine the temporal relationships between inflation and exchange rate changes and their implications for the trade balance in Uganda, which saw persistent trade deficits, rising inflation and disinflation episodes, as well as significant exchange-rate realignments and other liberalization measures over the sample period considered.
Design/methodology/approach
The short-run dynamics of the variables in question and the pattern of their long-run relationships are examined applying the bounds testing approach to cointegration on quarterly data.
Findings
The estimates suggest that, in the long run, a real depreciation leads to an increase in inflation; and that both real depreciation and inflation exert no significant effect on the trade balance. The estimated short-run dynamics suggest a causal relationship between the trade balance and the real exchange rate and between the real exchange rate and inflation, which is also found responsive to developments in the foreign sector. Taken together, the short-run and long-run multipliers seem to provide a weak support for the J-curve effect, while no evidence is found for the presence of the S-curve effect.
Originality/value
The study sheds light on the relationship among real exchange rate, inflation and the trade balance in the context of a small developing economy; it highlights that an improvement in the trade balance requires more than an appropriate exchange rate policy and underscores the importance of other policies in strengthening the external sector of the economy.
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Tantatape Brahmasrene and Komain Jiranyakul
This study investigates the impact of real exchange rates on the trade balances between Thailand and its major trading partners. Previous empirical evidence gave mixed results of…
Abstract
This study investigates the impact of real exchange rates on the trade balances between Thailand and its major trading partners. Previous empirical evidence gave mixed results of the impact of real exchange rates on trade balances. In this study, Augmented Dicky‐Fuller and Phillips‐Perron tests for stationarity followed by the cointegration tests are implemented. All variables in the model are nonstationary but cointegrated. In cointegrating regressions, biases are introduced by simultaneity and serial correlation in the error. The specification that deals with these problems is the non‐linear specification of Stock and Watson (1989). By using this non‐linear model as modified by Reinhart (1995), the results show that the impact of real exchange rates (Thai baht/foreign currency) on trade balances is significant in most cases. Therefore, the generalized Marshall‐Lerner condition seems to hold. Furthermore, the results show that the real exchange rates play a more important role in the determination of the bilateral trade balances than other factors. Since the real exchange rate variable plays a major role in this study, the policy recommendation is to prevent exchange rate misalignment. A policy that can neutralize the changes in nominal exchange rates and relative prices should be introduced to prevent further deterioration of the trade balance.
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Rosaria Rita Canale and Rajmund Mirdala
The role of money and monetary policy of the central bank in pursuing macroeconomic stability has significantly changed over the period since the end of World War II…
Abstract
The role of money and monetary policy of the central bank in pursuing macroeconomic stability has significantly changed over the period since the end of World War II. Globalization, liberalization, integration, and transition processes generally shaped the crucial milestones of the macroeconomic development and substantial features of economic policy and its framework in Europe. Policy-driven changes together with variety of exogenous shocks significantly affected the key features of macroeconomic environment on the European continent that fashioned the framework and design of monetary policies.
This chapter examines the key basis of the central bank’s monetary policy on its way to pursue and preserve the internal and external stability of the purchasing power of money. Substantial elements of the monetary policy like objectives and strategies are not only generally introduced but also critically discussed according to their accuracy, suitability, and reliability in the changing macroeconomic conditions. Brief overview of the Eurozone common monetary policy milestones and the past Eastern bloc countries’ experience with a variety of exchange rate regimes provides interesting empirical evidence on origins and implications of vital changes in the monetary policy conduction in Europe and the Eurozone.
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A.C. Arize, J. Malindretos and S. Christoffersen
This paper examines the existence and stability of both the long‐ and short‐run demand for narrow and broad money balances. The data for Singapore are used as a case study. The…
Abstract
This paper examines the existence and stability of both the long‐ and short‐run demand for narrow and broad money balances. The data for Singapore are used as a case study. The quarterly period examined is 1973:2‐1999:3 (105 observations). The study reveals the existence of a systematic long‐run relationship among real money balances, real income, interest rate and exchange rate. Results from testing the hypothesis of a unitary price elasticity confirm that only the broad money aggregate could be used as intermediate target of monetary policy. Using a formal test of parameter constancy designed specifically for cointegrating vectors, it is shown that nonstationarity and time invariance in the demand for money can be resolved by the inclusion of the exchange rate.
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This article examines if the national productions of West African Economic and Monetary Union (WAEMU) countries can be substituted for the imports by testing MLRC in these…
Abstract
Purpose
This article examines if the national productions of West African Economic and Monetary Union (WAEMU) countries can be substituted for the imports by testing MLRC in these countries.
Design/methodology/approach
The Mundell–Fleming model (MMF) is the analytical framework adopted in this paper with import demand and export supply functions estimation borrowed to Thirlwall (1979). This study covers four countries in West Africa from 1990 to 2021. The estimation procedure used is an Autoregressive Distributed Lag (ARDL) approach to cointegration.
Findings
The findings reveal that there is a strong marginal propensity to import in the WAEMU countries. The hypothesis of a non-significant price effect on imports in the short-term is confirmed for several countries while only Togo satisfies the MLRC in the short and long run.
Originality/value
This study presents several originalities: (1) it evaluates MLRC with a clear analytical framework; (2) unlike other studies, this article quantifies the MLRC from a theoretical, econometric and empirical point of view; (3) this article presents the results country by country in order to reveal heterogeneity between countries; (4) this study adds to the Marshall–Lerner condition for the derivation of Robinson by considering a situation where initially the trade balance is not in equilibrium.
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This paper investigates whether a J-curve can be detected in the time series data on China’s bilateral trade with the G-7 countries. It utilizes cointegration and causality tests…
Abstract
This paper investigates whether a J-curve can be detected in the time series data on China’s bilateral trade with the G-7 countries. It utilizes cointegration and causality tests to ascertain both the long-run relatedness, and the short-run dynamics, between the real exchange rate, national income, and the trade balance. There is some evidence that a real depreciation eventually improves the trade balance with some countries. But there is no indication of a negative short-run response which characterizes the J-curve.
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Kim Hiang Liow and Nappi‐Choulet Ingrid
The purpose of this paper is to discuss three corporate real estate (CRE) perspectives (business, financial and capital market) as well as some potential issues, supported by key…
Abstract
Purpose
The purpose of this paper is to discuss three corporate real estate (CRE) perspectives (business, financial and capital market) as well as some potential issues, supported by key research studies and evidence drawn from listed retail companies in the USA, and European and Asian countries; as real estate has always been recognized as a key value driver in the retail industry.
Design/methodology/approach
A significant amount of capital is locked‐up in CRE by business firms, and so this paper analyzes the role of CRE from a combination of three perspectives: business, financial and capital market. These three CRE perspectives are discussed and some important issues reviewed, supported by key research studies and evidence drawn from listed retail companies in the USA and in European and Asian countries.
Findings
Arising from the review and perspectives offered in this paper, it is evident that performance measures are required to assess how CRE are being used and perceived by management and investors from the business, financial and capital market perspectives. This combined approach helps position the strategic role of the CRE in the context of “whole firm” that reflects the integration of trading and real estate activities.
Practical implications
With an effective CREAM system endorsed by top management, the CRE' s potential contribution and incremental performance can be factored into the financial plans of the “property‐rich” retail firms and appropriately reflected in corporate valuation.
Originality/value
This paper offers combined business, financial and capital market perspectives to assess the role of CRE in listed retail firms. Evidence and important issues in relation to the three perspectives are reviewed and evaluated.
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Hande Argunsah and Begum Yalcin
Biofeedback is used for regulating vestibular adaptation and balance by providing real-time stimulus to the individual during physical activities. This study aimed at (1…
Abstract
Purpose
Biofeedback is used for regulating vestibular adaptation and balance by providing real-time stimulus to the individual during physical activities. This study aimed at (1) developing a wearable device, which tracks balance, counts the number and the direction of balance losses and provides haptic biofeedback through real-time vibration stimulus (2) investigating device efficacy on an adolescent medulloblastoma patient during static and dynamic tasks.
Design/methodology/approach
A 16-year-old medulloblastoma patient used the device during 10-m walking and single-leg stance tests. The knee joint kinematics and the number and direction of balance losses were recorded for “with” and “without” biofeedback conditions.
Findings
The device helped regulate the knee joint kinematics and reduce the number of balance losses of the medulloblastoma patient. The knee joint movement pattern similarity of the control subject was highly correlated (R2 = 0.997, RMSE = 1.232). Conversely, medulloblastoma patient knee joint movement pattern similarity was relatively weak (R2 = 0.359, RMSE = 18.6) when “with” and “without” biofeedback conditions were compared. The number of balance losses decreased when the medulloblastoma patient was guided with biofeedback.
Research limitations/implications
The major limitation of this pilot study is the lack of a large and homogeneous number of participants. The medulloblastoma patient used the device while walking after she was given enough time to get used to the tactile biological feedback, so the long-term effect of the device and biofeedback guidance were not investigated. Additionally, the potential desensitization with prolonged use of the device was not evaluated.
Practical implications
Biofeedback reduced the number of balance losses; additionally, the knee joint movement pattern was regulated during static and dynamic tasks. This device can be integrated into the physical therapy of patients with balance, vestibular and postural control impairments.
Social implications
This is compact and has an easy-to-wear design, patients, who have balance and postural control impairments, can practically use the device during their activities of daily living.
Originality/value
The device promotes physical activity adaptation and regulates gait through continuous and real-time balance control. Its design makes it simple for the user to wear it beneath clothing while using the sensor.
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