The monetary model of exchange rate: evidence from The Philippines

Chin, Lee and Azali, Mohamed and Yusop, Zulkornain and Yusoff, Mohammed (2007) The monetary model of exchange rate: evidence from The Philippines. Applied Economics Letters, 14. pp. 993-997. ISSN 1350–4851 (P) 1466–4291 (O)

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Abstract

This note examines the empirical validity of the monetary model of exchange rate determination for The Philippines via cointegration and vector error-correction model. It is found that the monetary model is a valid framework for the long-run exchange rate between Philippines peso-US Dollar exchange rate. However, the typical linear restrictions of flexible-price monetary model and proportionality between the exchange rate and relative money are rejected.

Item Type:	Article (Journal)
Additional Information:	4178/8024
Uncontrolled Keywords:	error-correction model (ECM)
Subjects:	H Social Sciences > HG Finance > HG3810 Foreign exchange
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Kulliyyah of Economics and Management Sciences > Department of Economics
Depositing User:	Professor Mohammed Yusoff
Date Deposited:	25 Nov 2011 14:53
Last Modified:	25 Nov 2011 14:53
URI:	http://irep.iium.edu.my/id/eprint/8024

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