U.S. Military Expenditure and the Dollar

Vittorio Grilli and Andrea Beltratti

Economic Inquiry, 1989, vol. 27, issue 4, 737-44

Abstract: This paper examines the connections between U.S. military expenditure and the dollar-mark real exchange rate. Quarterly data for the period 1951.1-1983.3 are used to show that there exists a significant relationship linking real exchange rate, real military spending, and real GNP. The conclusion is based on evidence that these three variables are cointegrated. Copyright 1989 by Oxford University Press.

Date: 1989
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