The paper studies the monetary approach to exchange rate for a group of five Pacific Basin economies, using quarterly data for the period of post – Asian financial crisis. Estimated results reveal that for Thailand and the Indonesia which were most affected by Asian financial crisis, monetary model did not work for explaining exchange rate movements.

TWO ESSAYS IN INTERNATIONAL ECONOMICS: AN EMPIRICAL APPROACH TO PURCHASING POWER PARITY AND THE MONETARY MODEL OF EXCHANGE RATE DETERMINATION I adopt a different strategy: I compare housing markets that differ in the strength of the residential location-school assignment link, and I develop simple reduced-form implications of parental valuations for the across-school distribution of student characteristics and educational outcomes as a function of the strength of this link. This across-market approach has the advantage that it does not rely on strong exclusion restrictions or distributional assumptions....