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Please use this identifier to cite or link to this item: http://hdl.handle.net/1959.3/233034
- An Asian monetary union?
- Lau, Evan; Hamzah, Siti Nur Zahara; Choong, Xin-Yi
- This study examines the validity of the long-run purchasing power parity (PPP) hypothesis using a battery of both univariate and panel unit root tests for 10 Asian countries against Chinese Yuan and Japanese Yen. We found evidence against mean reverting when Yuan is used as the numeraire while stronger evidence of the parity condition with the Yen-based rates based on Breuer et al. (2002, SURADF). The initiation of the Asian Monetary Union may be foreseeable with Japan as the leader, it could start off with selected countries.
- Publication type
- Journal article
- Research centre
- Swinburne University of Technology. Sarawak Campus. School of Business and Design
- Actual Problems of Economics, Vol. 132, no. 6 (2012), pp. 387-397
- Publication year
- FOR Code(s)
- 1401 Economic Theory; 1402 Applied Economics
- Asian 10; Asian monetary union; China; Chinese Yuan; Japan; Japanese Yen; Purchasing power parity; Real exchange rate
- National Academy of Management
- Publisher URL
- Copyright © 2012.
- Peer reviewed