• Title of article

    New evidence on the effects of US monetary policy on exchange rates

  • Author/Authors

    Kalyvitis، Sarantis نويسنده , , Michaelides، Alexander نويسنده ,

  • Issue Information
    روزنامه با شماره پیاپی سال 2001
  • Pages
    -254
  • From page
    255
  • To page
    0
  • Abstract
    We examine the impact of US monetary policy shocks on exchange rates using the monetary policy indicator proposed by Bernanke and Mihov [Quarterly Journal of Economics, 113 (1998) 869¯902]. We find evidence for instantaneous, rather than delayed, US dollar overshooting after a monetary shock when relative output and relative prices are included in the VAR specification. The forward premium puzzle persists due to the interest rate differential response
  • Keywords
    Markov process , reversibility , Dynamic factors , Nonlinear , Canonical analysis
  • Journal title
    Economics Letters
  • Serial Year
    2001
  • Journal title
    Economics Letters
  • Record number

    21679