The Monetary Approach to the Exchange Rate : Rational Expectations, Long-Run Equilibrium and Forecasting /

We re-examine the monetary approach to the exchange rate from a number of perspectives, using monthly data on the deutschemark-dollar exchange rate. Using the Campbell-Shiller technique for testing present value models, we reject the restrictions imposed upon the data by the forward-looking rational...

وصف كامل

التفاصيل البيبلوغرافية
المؤلف الرئيسي: MacDonald, Ronald
مؤلفون آخرون: Taylor, Mark
التنسيق: دورية
اللغة:English
منشور في: Washington, D.C. : International Monetary Fund, 1992.
سلاسل:IMF Working Papers; Working Paper ; No. 1992/034
الوصول للمادة أونلاين:Full text available on IMF
الوصف
الملخص:We re-examine the monetary approach to the exchange rate from a number of perspectives, using monthly data on the deutschemark-dollar exchange rate. Using the Campbell-Shiller technique for testing present value models, we reject the restrictions imposed upon the data by the forward-looking rational expectations monetary model. We demonstrate, however, that the monetary model is validated as a long-run equilibrium condition. Moreover, imposing the long-run monetary model restrictions in a dynamic error correction framework leads to exchange rate forecasts which are superior to those generated by a random walk forecasting model.
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وصف مادي:1 online resource (28 pages)
التنسيق:Mode of access: Internet
تدمد:1018-5941
وصول:Electronic access restricted to authorized BRAC University faculty, staff and students