Testing the Flow-Oriented vs. Portfolio Balance Hypotheses: Beyond Trade Channel Evidence of Balance Sheet Effects Dominance in Asia-Pacific OECD Equity and FX Markets
This study explores the dynamic, multi-horizon linkages between stock market prices and exchange rates across Asia-Pacific OECD countries to test the competing validity of the Flow-Oriented and Portfolio Balance hypotheses. Employing a wide-ranging econometric framework that integrates the Panel CS-ARDL model with Brei...