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Author: | Nautz, D. Ruth, K. |
Title: | Monetary disequilibria and the euro/dollar exchange rate |
Journal: | European Journal of Finance
2008 : OCT-DEC, VOL. 14:7-8, p. 701-716 |
Index terms: | euro dollars exchange rates monetary theory models money demand functional analysis |
Freeterms: | monetary disequilibria |
Language: | eng |
Abstract: | The paper investigates whether monetary disequilibria provided by the empirical literature on US and European money demand functions contain useful information about exchange rate movements and tries to fill the gap for the euro/dollar exchange rate. The author suggests that the empirical performance of the monetary exchange rate model improves when insights from the money demand literature are explicitly taken into account. |
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