Exchange rate misalignment, volatility and import flows in Malaysia

• Main Authors: Mohd Naseem, Niaz Ahmad, Tan, Hui Boon, Mohd, Siti Hamizah
• Format: Article
• Language: English
• Published: Faculty of Economics and Management, Universiti Putra Malaysia 2009
• Online Access: http://psasir.upm.edu.my/id/eprint/39450/1/39450.pdf; http://psasir.upm.edu.my/id/eprint/39450/; http://econ.upm.edu.my/ijem/vol3_no1.htm

This paper investigates the effect of real exchange rate misalignment and volatility on Malaysian import flows during 1991:Q1 to 2003:Q4. A measure of the quantitative proxy of the real exchange rate misalignment is constructed using the Natural Real Exchange Rate (NATREX) equilibrium model, whereas...