Nominal Exchange Rates and Prices: Evidence from Taiwan
Journal Title: Scholars Bulletin - Year 2017, Vol 3, Issue 3
Abstract
Abstract:Economic theories postulate that the nature of relationship between the Nominal Exchange Rate and Prices (domestic and foreign) are linearly related. We investigate this using information from Taiwan and adopted data driven methods in establishing the true nature of the relationship that exists between the Nominal Exchange Rate and the Domestic Prices and we discovered a nonlinear relationship and a 0.25% foreign price pass-through effect on the Nominal Exchange Rate of Taiwan. Keywords: Economic theories, Nominal Exchange Rate,Prices, Taiwan.
Authors and Affiliations
David Iheke Okorie, Dak-AdzakloCephas Simon-Peter, Manu Adasi Sylvester
Keywords
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