Abstract: This paper provides a modelling framework for evaluating the exchange rate dynamics of a target zone regime with undisclosed bands. We generalize the literature to allow for asymmetric one-sided regimes. Market participants’ beliefs concerning an undisclosed band change as they learn more about central bank intervention policy. We apply the model to Hong Kong’s one-sided currency boar...

Iran is one of the oil exporting countries, so the oil price plays a remarkable role in the government budget and is a major source of foreign exchange. On the other hand, the reliance of the government budget to oil income as well as its fluctuations is a fact referred to as the most important cause of inflation by many researchers. This paper explores the effect of shocks in the exchange rate...

Instability in the movement of prices is a major concern all countries. The rise foreign exchange and goods services are among key factors that causes fluctuation economic growth country. Thus, this paper adopted ARDL model to examine whether real effective rate, money supply Inflation Gambia for period 1985 2021. finding reveals our variables inflation positively negatively long run short resp...

This paper deals with an i * Corresponding author Email address:   nventory system with one central warehouse and a number of identical retailers. We consider perishable-on-the-shelf items; that is, all items have a fixed shelf life and start to age on their arrival at the retailers. Each retailer faces Poisson demand and employs (1, T) inventory policy. Although demand not met at a retai...

We develop a behavioral exchange rate model with chartists and fundamentalists to study cyclical behavior in foreign exchange markets. Within our model, the market impact of fundamentalists depends on the strength of their belief in fundamental analysis. Estimation of a STAR GARCH model shows that the more the exchange rate deviates from its fundamental value, the more fundamentalists leave the...