Contents of the volume

2016, Volume 69 - Issue 4

ISSN: 2499-8265
RSS feed citation: At RePEc
Publication date: 13 October 2016

EMERGING MEGA-INTEGRATION BLOCS: LIMITS AND PROSPECTS

Miroslav N. Jovanovic

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WHY ISN'T EUROPE GROWING?

Matti Viren

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EMU AND THE ANCHORING OF INFLATION EXPECTATIONS

David Mayes, Maritta Paloviita, Matti Viren

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INTERNATIONAL EVIDENCE ON THE FINANCIAL KUZNETS CURVE

Imad Moosa

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COMPARISON OF THE FUNDAMENTAL AND MONETARY MODELS OF THE DETERMINANTS OF THE ARGENTINE PESO/US DOLLAR EXCHANGE RATE

Yu Hsing

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THE IMPACT OF RECENT CRISIS ON THE REAL ESTATE MARKET IN THE UAE: EVIDENCE FROM ASYMMETRIC METHODS

Safa Al-Mohana, Abdulnasser Hatemi-J

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WHAT DRIVES LONG-RUN ECONOMIC GROWTH? EMPIRICAL EVIDENCE FROM SOUTH AFRICA

Themba Chirwa, Nicholas Odhiambo

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Genoa Chamber of Commerce
Economia Internazionale / International Economics

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Corresponding author

Yu HSING, Department of Management & Business Administration, College of Business, Southeastern Louisiana University, Hammond, LA, USA

Comparison of the Fundamental and Monetary Models of the Determinants of the Argentine Peso/US Dollar Exchange Rate

Pages

379-388

Abstract

Applying the demand and supply model, this paper finds that the ARS/USD exchange rate (units of the Argentine peso per U.S. dollar) is positively affected by the Argentine interest rate, U.S. real GDP, the U.S. Stock price, the Argentine inflation rate and the expected exchange rate, and it is negatively associated with the U.S. interest rate, Argentine real GDP, the Argentine stock price and the U.S. inflation rate. In the monetary models, the positive sign of the interest rate differential confirms the Frenkel-Bilson model, and the positive sign of the inflation rate differential confirms the Dornbusch-Frankel model. The demand and supply model exhibits a higher value of R-squared and a lower forecast error than monetary models.

JEL classification

F31, F41

Keywords

Exchange Rates, Interest Rates, Real GDP, Stock Prices, Inflation Rates, EGARCH

Index

  1. Introduction
  2. Literature Survey
  3. The Model
  4. Empirical Results
  5. Summary and Conclusions

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