This paper examines the empirical link between the dollar exchange rate of the euro and the monetary fundamentals. The exchange rate is found to be cointegrated with money and income differentials, while the homogeneity restrictions are supported by the data. The weak form restrictions of the...

In this paper the monetarist model of the exchange rate determination during the Romanian hyperinflation is tested using data for the lei/dollar exchange rate. A number of novel findings are reported. In particular, the analysis, which validates the monetarist approach, shows that a rapid...

This paper first examines the existence of a long-run demand for foreign reserve holdings in Greece and second, tests for its temporal instability using time series techniques. Cointegration tests reveal the existence of a systematic long-run relationship between real reserves, real income,...