EXCHANGE RATE DETERMINATION USING A LINEAR REGRESSION MODEL: A MONETARY APPROACH

The monetary approach to exchange rate determination has been criticised because of the lack of empirical evidence. In this research note, a linear regression equation was estimated according to the monetary approach to explain changes in the nominal United States dollar/rand exchange rate for the years 1960-1988. Results indicate that this exchange rate is determined by relative United States and South African money supplies, nominal interest rates and real incomes. The R2 value was 0.965 percent.


Other Titles:
Bepaling van die wisselkoers deur middel van 'n linere regressie model: 'n monetre benadering.
Issue Date:
1992-03-1992-03-1992-03
Publication Type:
Journal Article
ISSN:
0303-1853
Language:
English
Published in:
Agrekon, Volume 31, Issue 1
Page range:
33-35




 Record created 2018-01-31, last modified 2018-02-01

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