Jimenez-Martin, Juan Angel Jimenez Martin; Frutos, … - Facultad de Ciencias Económicas y Empresariales, … - 2004
The two-country monetary model has become a fundamental tool for explaining the behavior of the exchange rate. However, the popularity of this approach is not justified by its empirical support. One of the reasons for the empirical “failure” of exchange rate models could be the econometric...