EXCHANGE RATE DETERMINATION USING A LINEAR REGRESSION MODEL: A MONETARY APPROACH

E. J. Goedecke, V. Y. Dushmanitch and G. F. Ortmann

Agrekon, 1992, vol. 31, issue 01

Abstract: The monetary approach to exchange rate determination has been criticised because of the lack of empirical evidence. In this research note, a linear regression equation was estimated according to the monetary approach to explain changes in the nominal United States dollar/rand exchange rate for the years 1960-1988. Results indicate that this exchange rate is determined by relative United States and South African money supplies, nominal interest rates and real incomes. The R2 value was 0.965 percent.

Keywords: Agricultural and Food Policy; Financial Economics (search for similar items in EconPapers)
Date: 1992
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Persistent link: https://EconPapers.repec.org/RePEc:ags:agreko:267512

DOI: 10.22004/ag.econ.267512

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