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Title: |
The Oil-Price Effect on the Dollar/Pound Rate
of Exchange |
| Author: |
El Shazly, Mona
R. |
| Author
Affiliation: |
Columbia U |
| Source: |
International Economic Journal, Autumn 1989, v. 3, no. 3, pp. 73-83 |
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Publication Date: |
Autumn 1989 |
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Abstract: |
In this paper the basic monetary model of
exchange rate determination is extended to capture the impact of real
shocks in explaining exchange rate behavior. The model is tested using
the dollar/pound rate of exchange over the period 1978-85. The present
work modifies the standard model by incorporating the relative price of
oil on the demand for money. Results of the test confirm the statistical
significance of the variables specified by the model in determining the
value of the pound sterling during this time. |
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