Global Capital Flows, Time Varying Fundamentals and Transitional Exchange Rate Dynamics: An MS-VAR Approach

This paper studies whether dynamic relationship between exchange rate and economic and financial fundamentals vary depending on exchange rate is overvalued and undervalued with respect to its fundamental value. To achieve this, we implement two-state Markov Switching Vector Auto Regression (MSVAR) m...

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Bibliographic Details
Main Authors: Süleyman Hilmi Kal, İlhami Gündüz
Format: Article
Language:English
Published: Istanbul University Press 2019-06-01
Series:İstanbul İktisat Dergisi
Subjects:
Online Access:https://cdn.istanbul.edu.tr/file/JTA6CLJ8T5/7F6FB4E99DF74CC3AB898A4E2F4CAF69
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