Karfakis, Costas; Phipps, Anthony - In: European Research Studies Journal I (1998) 1, pp. 91-108
interest rate differential form a cointegrating relationship. This paper uses this evidence to analyse the nominal US$/A …$ exchange rate. The US$/A$ rate is found to be cointegrated with the terms of trade and relative price levels. However, interest … modelling movements in the US$/A$ exchange rate. Changes in a long-run interest rate differential, possibly reflecting …