The Relationship between Exchange Rate and Key Macroeconomic Indicators. Case Study: Romania

Anca Elena Nucu ()
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Anca Elena Nucu: “Alexandru Ioan Cuza” University of Iasi,Romania

Romanian Economic Journal, 2011, vol. 14, issue 41, 127-145

Abstract: The purpose of this article is to examine the influence of the following key macroeconomic indicators: GDP, inflation rate, money supply, interest rate and balance of payments on exchange rate of the Romanian leu against the most important currencies (EUR, USD) during 2000-2010 period. The main findings of our study are: it is an inverse relationship between exchange rate EUR/RON, Gross Domestic Product, respectively money supply and a direct relationship between exchange rate EUR/RON, inflation and interest rate. We can not validate the correlation between exchange rate and Balance of payment, because the test statistic is not significant.

Keywords: exchange rate; GDP; money supply; inflation; balance of payment; econometric analysis (search for similar items in EconPapers)
JEL-codes: C5 E31 F31 (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:rej:journl:v:14:y:2011:i:41:p:127-145

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