erc/metu
INTERNATIONAL CONFERENCE IN ECONOMICS  IV
September 13-16, 2000, Ankara

The Impact of Monetary Policy Shocks on Exchange Rate

Eman Selim (El Azher University, Egypt)

Abstract  

Economic literature of the determination of exchange rates doubts the link between monetray policy and exchange rate. The paper is an empirical study to investigate the effect of shocks to monetary policy on exchange rates. The paper uses different measures of monetary policy shocks. The paper investigate the impact of monetary policy on exchange rates in different exchange rate regims. Specifically speaking, the paper investigate the effect of shocks to monetary policy on exchange rate under both the fixed and floatable exchange rates regims. The paper uses the VAR methodlogy with monthly data of data representing monetary policy indicators and monetary policy transmission variables. the paper determine the impact of shocks to monetary policy on both nominal and real exchange rates in both groups of countries.

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