Rahman, Matiur; Mustafa, Muhammed; Bailey, Eldon - In: Applied Economics Letters 3 (1996) 6, pp. 365-368
This paper applies the well-known cointegration approach to explore a possible long-run pairwise relationship between (i) US real budget deficits and real exchange rates, and (ii) US inflation rates and real exchange rates. The unit root test shows that each of the above time series is...