The monetary approach to exchange rates and the behaviour of the Canadian dollar over the long run

2001 ◽  
Vol 11 (5) ◽  
pp. 475-481 ◽  
Author(s):  
Bill Francis ◽  
Iftekhar Hasan ◽  
James R. Lothian
Keyword(s):  
Exchange Rates ◽  
Canadian Dollar ◽  
Long Run ◽  
Monetary Approach

scholarly journals Exchange rate and monetary fundamentals: Long run relationship revisited

2015 ◽  
Vol 62 (1) ◽  
pp. 33-54
Author(s):  
Niyati Bhanja ◽  
Arif Dar ◽  
Aviral Tiwari
Keyword(s):  
Exchange Rate ◽  
Maximum Likelihood ◽  
Exchange Rates ◽  
Integration Method ◽  
Nominal Exchange Rate ◽  
Monetary Model ◽  
Integration Approach ◽  
Long Run ◽  
Monetary Approach ◽  
Likelihood Approach

This study re-examines the long run validity of the monetary approach to exchange rate determination for India. In particular, the long run association of bilateral nominal exchange rate of Indian rupee vis-?-vis USD, Pound-sterling, Yen and Euro against the corresponding monetary fundamentals that the model underlines has been tested using Johansen-Juselius maximum likelihood framework and Gregory-Hansen co-integration approach. Irrespective of the exchange rates the study finds a co-integrating relationship among the variables using Johansen-Juselius maximum likelihood approach. The Gregory-Hansen co-integration method allows for one break determined endogenously in three specifications also confirms the long run relationship. Our results, hence, suggest that the monetary model is a valid theory of long run equilibrium condition for the rupee-dollar, rupee-pound, rupee-yen and rupee-euro exchange rates.

Exchange Rates I: The Monetary Approach in the Long Run

2017 ◽  
pp. 428-465
Author(s):  
Robert C. Feenstra ◽  
Alan M. Taylor
Keyword(s):  
Exchange Rates ◽  
Long Run ◽  
Monetary Approach

scholarly journals Exchange Rates and Monetary Fundamentals: What Do We Learn from Linear and Nonlinear Regressions?

2014 ◽  
Vol 2014 ◽  
pp. 1-14 ◽  
Author(s):  
Guangfeng Zhang
Keyword(s):  
Exchange Rate ◽  
Exchange Rates ◽  
Correction Model ◽  
Exchange Rate Dynamics ◽  
Long Run ◽  
Exchange Rate Movements ◽  
Short Run ◽  
Us Dollar ◽  
Linear And Nonlinear ◽  
Japanese Yen

This paper revisits the association between exchange rates and monetary fundamentals with the focus on both linear and nonlinear approaches. With the monthly data of Euro/US dollar and Japanese yen/US dollar, our linear analysis demonstrates the monetary model is a long-run description of exchange rate movements, and our nonlinear modelling suggests the error correction model describes the short-run adjustment of deviations of exchange rates, and monetary fundamentals are capable of explaining exchange rate dynamics under an unrestricted framework.

scholarly journals FDI location and exchange rates. is there really a relationship between the two?

2015 ◽  
Vol 13 (1) ◽  
pp. 642-651
Author(s):  
Kunofiwa Tsaurai
Keyword(s):  
South Africa ◽  
Exchange Rates ◽  
Coming Out ◽  
Causal Relation ◽  
Exact Nature ◽  
Bounds Testing ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Long Run ◽  
Short Run

The exchange rate led foreign direct investment (FDI), FDI led exchange rates and feedback effect hypotheses summarise the literature around the nature of the relationship between FDI and exchange rates. So many authors on this subject over a long period have been found to generally side with of the above-mentioned hypothesis or another without a consensus. Despite this lack of consensus with regard to the exact nature of the causal relation between these two variables, what is coming out clearly from the literature is that there indeed exist a relationship between FDI and exchange rates. The lack of consensus has prompted this current study that used the ARDL (Autoregressive distributed lag)-bounds testing approach. The study revealed the existence of causality from (1) the rand value to FDI in the long run and (2) FDI to the rand value only in the short run in South Africa. The author recommends that policies which strengthen the value of the rand should be put in place in order to attract FDI in the long run. The flow of FDI into South Africa will in turn not only stabilises the value of the rand.

scholarly journals The monetary approach to exchange rates in the CEECs1

2005 ◽  
Vol 13 (2) ◽  
pp. 395-416 ◽  
Author(s):  
Jesus Crespo-Cuaresma ◽  
Jarko Fidrmuc ◽  
Ronald MacDonald
Keyword(s):  
Exchange Rates ◽  
Monetary Approach
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