Cover Image
Read Now

The Monetary Model Strikes Back Evidence from the World

We revisit the dramatic failure of monetary models in explaining exchange rate movements. Using the information content from 98 countries, we find strong evidence for cointegration between nominal exchange rates and monetary fundamentals. We also find fundamentalsbased models very successful in beat...

Full description

Bibliographic Details
Main Author: Cerra, Valerie
Other Authors: Saxena, Sweta
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 2008
Series:IMF Working Papers
Subjects:
Inflation
Income
Monetary Economics
Personal Income
Deflation
Monetary Policy, Central Banking, And The Supply Of Money And Credit: General
Exchange Rate Adjustments
Currency
Personal Income, Wealth, And Their Distributions
Money Supply
Price Level
Foreign Exchange
Monetary Base
Prices
Macroeconomics
Exchange Rates
Money And Monetary Policy
United States
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
Description
Summary:We revisit the dramatic failure of monetary models in explaining exchange rate movements. Using the information content from 98 countries, we find strong evidence for cointegration between nominal exchange rates and monetary fundamentals. We also find fundamentalsbased models very successful in beating a random walk in out-of-sample prediction
Physical Description:41 pages
ISBN:9781451869354

Similar Items