This paper validates the monetary model in the determination of the dollar-yen exchange rate by applying cointegration … monetary model based on the error-correction model outperforms random walk models. …

versions of the monetary model of nominal exchange rate determination. In agreement with the existing empirical literature, we … find that nominal exchange rate movements are difficult to forecast, with a random walk generally dominating the monetary … model in terms of predictive accuracy conditional on observed monetary fundamentals at all horizons. …

This paper applies the Johansen cointegration technique to examine the validity of the monetary model of exchange rate …

Mean Group estimator, the Fully Modified Least Square estimator and the Dynamic Least Square estimator. The monetary model …

In this paper, we examine the monetary model of the Malawi Kwacha – U S dollar exchange rate during the current … to the restriction implied by the monetary model. The short run equation indicates the following results: First, the … demonstrated through the use of Johansen’s multivariate cointegration technique that an unrestricted monetary model does provide a …

monetary ``natural experiment,'' where fundamental relationships, like money demand, PPP and the monetary model of exchange …

restrictions imposed upon the data by the forward-looking rational expectations monetary model. We demonstrate, however, that the … monetary model is validated as a long-run equilibrium condition. Moreover, imposing the long-run monetary model restrictions in …