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Volume 9
Issue 4
Online publication date 2014-01-25
Title Financial crisis and exchange rates in emerging economies: An empirical analysis using PPP-UIP-Framework
Author Abdul Rashid, Mashael Bin Saedan
Abstract This paper empirically investigates the effects of 2008 financial crisis on exchange rate determination in PPP-UIP framework for four emerging countries, using monthly date over the period 1981-2012. The results suggest that the recent financial crisis led to change the role of exchange rate determinants in exchange rate determination. The findings also reveal that the effects of financial crisis on the exchange rate are different in all the four emerging economies. The findings of the study are of significant for policy makers in designing effective policies in order to reduce the effects of financial crisis on exchange rates.
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References
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Keywords Exchange rates; financial crisis; PPP; UIP; emerging economies
DOI http://dx.doi.org/10.15208/beh.2013.24
Pages 86-96
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