Exchange rate determination during hyperinflation: the case of the Romanian lei

Costas Karfakis

Applied Financial Economics, 2003, vol. 13, issue 6, 473-476

Abstract: In this paper the monetarist model of the exchange rate determination during the Romanian hyperinflation is tested using data for the lei/dollar exchange rate. A number of novel findings are reported. In particular, the analysis, which validates the monetarist approach, shows that a rapid increase in the money supply and inflation in Romania has been a source of a depreciating lei, while an increase in the Romanian real income has been a source of an appreciating lei. One policy implication of the results is that any policy aimed at reducing the rate of monetary expansion and inflation, and producing economic growth should boost the value of the lei.

Date: 2003
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.tandfonline.com/doi/abs/10.1080/0960310022000020870 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:apfiec:v:13:y:2003:i:6:p:473-476

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/RAFE20

DOI: 10.1080/0960310022000020870

Access Statistics for this article

Applied Financial Economics is currently edited by Anita Phillips

More articles in Applied Financial Economics from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().