In contrast with the BOP theory of foreign exchange, in which the rate of exchange is determined by the flow of funds in the foreign exchange market, the monetary approach postulates that …

central objective of theoretical models of exchange rate determination ought to be a clearer understanding of the economic mechanisms governing the actual behavior of exchange rates …

2018年4月2日 · 汇率决定理论主要有国际借贷学说 (Theory of International Indebtedness)、购买力平价学说 (Theory of Purchasing Power Parity)、利率平价学说 (Theory of Interest Rate …

The model shows how a change in the terms of trade caused by relative supply or demand shifts is divided between nominal price changes in each country and an exchange rate change, …

The evolution of a floating exchange rate system gave rise to numerous theories exchange rate determination. Traditional theories like the elasticity approach or sorption approach focus on …

2012年9月5日 · During the 1950s and 1960s, the subsequent literature on open-economy macroeconomics was based on the underlying theory that the elasticities approach captures …

According to Covered Interest Rate theory, the exchange rate forward premiums (discounts) nullify the interest rate differentials between two sovereigns. In other words, covered interest …

The monetary approach to exchange rate determination is based on the proposition that exchange rates are established through the process of balancing the total supply of, and the …

In this paper, we conduct variance tests and efficient-markets tests of three different models of exchange-rate determination; the equilibrium rational-expectations model (ERE), the currency …

In particular 8.2.7 where the monetary model of the exchange rate is presented as a varaint of the Cagan model in Ch 8.2.1-8.2.5. Article by Rogo¤: Exchange rates in the modern oating era: …