A Bayesian econometric approach and threshold variables have been employed in this study to investigate the linear and nonlinear relationship between the Hong Kong Dollar and New Taiwan Dollar over the sample period August 1997-July 2006. Evidence indicates that both commodities bring about no positive effects on each other, thus a more conservative policy may be implemented by the Central Bank policymakers of Hong Kong and Taiwan.
Relation:
The 2nd International conference on Artificial Intelligence, Management Science and Electronic Commerce, : 2065-2068
