Exchange rate adjustment and output in Greece and Cyprus: evidence from panel data
This paper studies the effect of currency depreciation in Greece and Cyprus using panel data from 1969 to 1998. An empirical model, which includes monetary as well as fiscal variables in addition to exchange rates, is developed. Two versions of this model, one with the real exchange rate and another with the nominal exchange rate and foreign-to-domestic price ratio are estimated. Before estimating the model the time series properties of the data are diagnosed using unit root and cointegration tests. The estimated results suggest that the exchange rate depreciation is expansionary in the short run. In the medium and long run it is neutral to the economy.
Year of publication: |
2004
|
---|---|
Authors: | Upadhyaya, Kamal ; Mixon, Franklin ; Bhandari, Rabindra |
Published in: |
Applied Financial Economics. - Taylor & Francis Journals, ISSN 0960-3107. - Vol. 14.2004, 16, p. 1181-1185
|
Publisher: |
Taylor & Francis Journals |
Saved in:
Online Resource
Saved in favorites
Similar items by person
-
Determinants of private saving in South Asia
Bhandari, Rabindra, (2007)
-
Exchange rate volatility and foreign direct investment in South Asia
Upadhyaya, Kamal Prasad, (2011)
-
Is there a J-curve in China-U.S. trade?
Upadhyaya, Kamal Prasad, (2022)
- More ...