Economic integration and the foreign exchange

Arbeitspapier

This paper demonstrates effects of economic convergence processes on the foreign exchange behaviour in a monetary modelling approach. Since the exchange rate represents the relative price of two currencies, commonness of stochastic trends between the fundamental determinants of supply and demand of the underlying monies restricts exchange rate movements to transitory fluctuations. In the spirit of optimal currency areas, this has the potential to serve as a criterion for an all-round integration of two economies. Empirically, such a constellation is found between Australia and New Zealand, whereas diverging trends in money and interest rates characterise the relation of Australia towards the US.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: SFB 649 Discussion Paper ; No. 2007,038

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Foreign Exchange ; Open Economy Macroeconomics ; Multiple or Simultaneous Equation Models: Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
• Thema: Monetary Exchange Rate Model ; Convergence ; Stationarity ; Australia ; Wechselkurs ; Wirtschaftsintegration ; Entwicklungskonvergenz ; Stochastischer Prozess ; Monetäre Wechselkurstheorie ; Theorie ; Australien ; Neuseeland ; USA

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Weber, Enzo
• Ereignis: Veröffentlichung
• (wer): Humboldt University of Berlin, Collaborative Research Center 649 - Economic Risk
• (wo): Berlin
• (wann): 2007

Weitere Informationen

• Handle: http://hdl.handle.net/10419/25210
• Letzte Aktualisierung: 10.03.2025, 11:42 MEZ