Logo
Munich Personal RePEc Archive

The role of monetary policy in managing the euro - dollar exchange rate

Mylonidis, Nikolaos and Stamopoulou, Ioanna (2011): The role of monetary policy in managing the euro - dollar exchange rate.

[thumbnail of MPRA_paper_29291.pdf]
Preview
PDF
MPRA_paper_29291.pdf

Download (178kB) | Preview

Abstract

The US Federal Reserve’s new relaxed monetary policy (the so-called quantitative easing) has triggered controversy among economists and policy makers about its effectiveness. This paper investigates the role of monetary policy in managing the euro – dollar exchange rate via alternative cointegration tests and impulse response functions. It is found that monetary fundamentals have neither long- nor short-run impact on the exchange rate. This implies that the Fed’s quantitative easing schemes are unlikely to have any significant impact on the euro – dollar rate.

Atom RSS 1.0 RSS 2.0

Contact us: mpra@ub.uni-muenchen.de

This repository has been built using EPrints software.

MPRA is a RePEc service hosted by Logo of the University Library LMU Munich.