| The goal of this paper is to estimate the effect between
exchange-rate
uncertainty and unemployment in South Korea and Taiwan.
We use a
vector autoregressive model to provide an efficient estimation
between
exchange-rate uncertainty and unemployment. We found that
a long-run
equilibrium relationship between exchange-rate uncertainty
and
unemployment exists in both Taiwan and South Korea when
exchange-rate
uncertainty is generated by two different measures. The
exchange-rate
uncertainly has a short-run impact
on unemployment and vice versa, no matter which measure of
uncertainty
is used. |
Abstract
|
