The Short-and Long-Run Relationships Between the Exchange Rate of the Dollar and Producer Prices in the U.S.
This paper investigates empirically the relationship between exchange rates and producer prices in the U.S. using a multivariate dynamic framework. Cointegration tests reveal that is a stable long-run relationship between prices, exchange rates and other factors according to which depreciations lead to higher prices. However, the estimated effect is not consistent with the pure form of the purchasing power parity hypothesis. It is also found that in the short run, the rate of price inflation. Finally, there appears to be bi-directional causality between producer prices and exchange rates. [E31, F31, F41[
Year of publication: |
1997
|
---|---|
Authors: | Nourzad, Farrokh |
Published in: |
International Economic Journal. - Taylor & Francis Journals, ISSN 1016-8737. - Vol. 11.1997, 2, p. 59-71
|
Publisher: |
Taylor & Francis Journals |
Saved in:
Saved in favorites
Similar items by person
-
The productivity effect of government capital in developing and industrialized countries
Nourzad, Farrokh, (2000)
-
Infrastructure capital and private sector productivity : a dynamic analysis
Nourzad, Farrokh, (1998)
-
Was the 1983 - 84 recovery due more to demand or supply shocks?
Nourzad, Farrokh, (1991)
- More ...