This book demonstrates that nonlinearity matters in the study of exchange rate. It includes discussion on the theoretical and empirical aspects of nonlinearity in exchange rate. It puts forward that linear monetary exchange rate model can be extended into the nonlinear framework, which is more relevant to the contemporary development in exchange rate study. Various monetary models are discussed and the validity of these models in the context of ASEAN-5 countries is examined. Notably, this book offers detailed discussions on the practical aspects of the relevant nonlinear econometrics...