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AN EMPIRICAL EXAMINATION OF THE LONG RUN MONETARY (EXCHANGE RATE) MODEL

Swarna D. Dutt (Dutt would like to acknowledge the Faculty Research Grant #1021114107000 from State University of West Georgia for 1998–99. Department of Economics, Richards College of Business, State University of West Georgia, Carrollton, GA 30118)
Dipak Ghosh (Division of MMFE, Box 4058, Emporia State University, Emporia, KS 66801)

Studies in Economics and Finance

ISSN: 1086-7376

Article publication date: 1 January 1998

Abstract

The monetary approach to long run exchange rate determination is reexamined for the Canadian — US dollar exchange rate. We first test for non‐stationarity, and then conduct a multivariate cointegration analysis to examine the validity of the monetary model in determination of exchange rates over the long run. Our results uphold the validity of the monetary approach.

Citation

Dutt, S.D. and Ghosh, D. (1998), "AN EMPIRICAL EXAMINATION OF THE LONG RUN MONETARY (EXCHANGE RATE) MODEL", Studies in Economics and Finance, Vol. 19 No. 1/2, pp. 62-83. https://doi.org/10.1108/eb028753

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MCB UP Ltd

Copyright © 1998, MCB UP Limited