IIUM Repository (IREP)

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)

[img] PDF (The monetary model of exchange rate: evidence from The Philippines) - Published Version
Restricted to Repository staff only

Download (105kB) | Request a copy

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: Kulliyyah of Economics and Management Sciences > Department of Economics
Depositing User: Professor Mohammed Yusoff
Date Deposited: 25 Nov 2011 06:53
Last Modified: 25 Nov 2011 06:53
URI: http://irep.iium.edu.my/id/eprint/8024

Actions (login required)

View Item View Item

Downloads

Downloads per month over past year