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Article
Exchange Rate Regimes and International Output Co-Movement
Applied Economics Letters
  • Tony Caporale, University of Dayton
  • Chulho Jung, Ohio University - Main Campus
Document Type
Article
Publication Date
1-1-1998
Abstract
Utlizing Johansen's (1988) multivariate cointegration testing procedure, we find a cointegrating vector between the outputs of five major industrialized nations for the fixed exchange rate period. However, this relationship breaks down for the flexible exchange rate era. We argue that the breakdown of monetary policy coordination caused by the abandonment of the fixed exchange rates explains the weakening of the international character of business cycles.
Inclusive pages
165-168
ISBN/ISSN
1350-5851
Publisher
Taylor & Francis
Peer Reviewed
Yes
Citation Information
Tony Caporale and Chulho Jung. "Exchange Rate Regimes and International Output Co-Movement" Applied Economics Letters Vol. 5 Iss. 3 (1998)
Available at: http://works.bepress.com/tony_caporale/6/