The monetary model of the exchange rate and the Greek drachma in the 1920s

Dimitris Georgoutsos and Georgios Kouretas

Applied Financial Economics, 1997, vol. 7, issue 5, 507-515

Abstract: The monetary model of exchange rate determination is tested by means of cointegration analysis for three bilateral drachma exchange rates over the period September 1919 to April 1928. Strong evidence is obtained for the drachma-US dollar case of a long-run relationship which is identified with the monetary model. This implies that market fundamentals accounted for the substantial loss of the external value of the drachma over the period under examination. The failure to identify this model in the other two cases, namely, Drachma-pound sterling and Drachma-French franc, is explained by the monetary policy pursued by Greece during that period.

Date: 1997
References: View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.tandfonline.com/doi/abs/10.1080/096031097333376 (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:7:y:1997:i:5:p:507-515

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

DOI: 10.1080/096031097333376

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 ().