This chapter model the factors behind the instability of exchange rate by using exchange market pressure (EMP) index. The authors focus first to construct the EMP and then secondly, test the interrelationship between EMP, real gross domestic product, money supply (M2), consumer price index, trade openness and share price using quarterly data in selected East Asian countries. The empirical results of this study explicitly indicate that EMP is determined by the states of other variables in most of the studied countries. Planning on the macrolevel is essential when managing and ensuring continuous monitoring of the exchange rate condition. This would translate into positive macroeconomic welfare and economic growth sustainability.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.
customersupport@researchsolutions.com
10624 S. Eastern Ave., Ste. A-614
Henderson, NV 89052, USA
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
Copyright © 2024 scite LLC. All rights reserved.
Made with 💙 for researchers
Part of the Research Solutions Family.