Mylonidis, Nikolaos and Stamopoulou, Ioanna (2011): The role of monetary policy in managing the euro - dollar exchange rate.
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Abstract
The US Federal Reserve’s new relaxed monetary policy (the so-called quantitative easing) has triggered controversy among economists and policy makers about its effectiveness. This paper investigates the role of monetary policy in managing the euro – dollar exchange rate via alternative cointegration tests and impulse response functions. It is found that monetary fundamentals have neither long- nor short-run impact on the exchange rate. This implies that the Fed’s quantitative easing schemes are unlikely to have any significant impact on the euro – dollar rate.
| Item Type: | MPRA Paper |
|---|---|
| Original Title: | The role of monetary policy in managing the euro - dollar exchange rate |
| Language: | English |
| Keywords: | Exchange rates; Monetary model; Cointegration; Impulse response functions |
| Subjects: | E - Macroeconomics and Monetary Economics > E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit > E52 - Monetary Policy F - International Economics > F3 - International Finance > F31 - Foreign Exchange |
| Item ID: | 29291 |
| Depositing User: | Nikolaos Mylonidis |
| Date Deposited: | 08 Mar 2011 01:04 |
| Last Modified: | 28 Sep 2019 14:28 |
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| URI: | https://mpra.ub.uni-muenchen.de/id/eprint/29291 |
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