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Rethinking the exchange rate disconnect puzzle theory in ASEAN-6

Author

Listed:
  • Adhitya Wardhono
  • Badara Shofi Dana
  • M.Abd. Nasir

    (Department of Economics and Development Studies, Universitas Jember, Jember, Indonesia
    Department of Economics and Development Studies, Universitas Jember, Jember, Indonesia
    Department of Economics and Development Studies, Universitas Jember, Jember, Indonesia)

Abstract

The theory of the exchange rate disconnect puzzle provides evidence of the instability of exchange rate relationship with macroeconomic fundamentals. This study will analyse the enactment of the theory of the exchange rate disconnect puzzle with the macroeconomic fundamental phenomenon in affecting the exchange rate movements in the ASEAN-6. The method of analysis Generalized Method of Moment (GMM) with panel data is used to provide an explanation for the existence of the theory of the ex- change rate puzzle disconnect. Results the analysis showed the relationship between macroeconomic fundamentals through proxies of the monetary approach affect to exchange rate movements in the ASEAN-6.

Suggested Citation

  • Adhitya Wardhono & Badara Shofi Dana & M.Abd. Nasir, 2017. "Rethinking the exchange rate disconnect puzzle theory in ASEAN-6," Economic Journal of Emerging Markets, Universitas Islam Indonesia, vol. 9(1), pages 98-103, April.
    • Handle: RePEc:uii:journl:v:9:y:2017:i:1:p:98-103
    DOI: 10.20885/ejem.vol9.iss1.art10
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    References listed on IDEAS

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    Cited by:

    1. Adhitya Wardhono & M. Abd. Nasir & Ciplis Gema Qori’ah & Yulia Indrawati, 2021. "Movement of Inflation and New Keynesian Phillips Curve in ASEAN," Economies, MDPI, vol. 9(1), pages 1-9, March.

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    More about this item

    Keywords

    dynamic panel data; monetary exchange rate model; foreign exchange rate;
    All these keywords.

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • F31 - International Economics - - International Finance - - - Foreign Exchange

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