Abstract
This paper applies the exchange market pressure (EMP) model to Korea under a managed floating exchange rate. We show that the EMP model is superior to one concentrating solely on foreign reserve or exchange rate changes. Given that the balance of payments in Korea experienced a drastic turn to surplus during the estimated period, we checked the stability of the coefficients. The results show that the coefficients have remained stable.
Original language | English |
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Pages (from-to) | 587-590 |
Number of pages | 4 |
Journal | Applied Economics |
Volume | 23 |
Issue number | 4 |
DOIs | |
State | Published - 1 Apr 1991 |