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The monetary approach to exchange rate determination for Malaysia

Lee Chin (), M. Azali () and Kent Gerard Matthews ()

Applied Financial Economics Letters, 2007, vol. 3, issue 2, pages 91-94

Abstract: This article uses alternative versions of the monetary approach to exchange rate determination to explain the Malaysian-ringgit-USD exchange rate during the recent past. The result shows that in general the estimated coefficients of money and income differentials are consistent with all variants of monetary model. In particular, the evidence strongly supports the Bilson's version of the monetary approach.

Date: 2007

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