A standard monetary model and the variability of the deutschemark-dollar exchange rate

  • West K
  • 5

    Readers

    Mendeley users who have this article in their library.
  • 22

    Citations

    Citations of this article.

Abstract

This paper uses a novel test to see whether the Meese (1985) and Woo (1985) models are consistent with the variability of the deutschemark-dollar exchange rate 1974-84. The answer, perhaps surprisingly, is yes. Both models, however, explain the month-to-month variability as resulting in a critical way from unobservable shocks to money demand and purchasing power parity. It would therefore be of interest in future work to model one or both of these shocks as explicit functions of economic variables. © 1987 Elsevier Science Publishers B.V. (North-Holland).

Get free article suggestions today

Mendeley saves you time finding and organizing research

Sign up here
Already have an account ?Sign in

Find this document

Cite this document

Choose a citation style from the tabs below

Save time finding and organizing research with Mendeley

Sign up for free