Please use this identifier to cite or link to this item:
Moersch, Mathias
Nautz, Dieter
Year of Publication: 
Series/Report no.: 
SFB 373 Discussion Paper 1998,6
We emphasize the importance of properly identifying the long-run relations underlying the monetary model of the exchange rate. The separate estimation of long-run money demands leads to a 'structural' error correction equation which allows an interpretation of the various channels affecting the exchange rate in the monetary model. We apply this approach to the analysis of the DM/Dollar exchange rate where the structural model yields better results than various alternative forecast strategies, among them a random walk.
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

Files in This Item:
244.57 kB

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.