PPP and monetary model of exchange rate determination : the case of Singapore
This academic project examined the Purchasing Power Parity (PPP) model and the Monetary model for the Singapore-US exchange rate. Results of the cointegration analysis reveal that the exchange rate is in agreement with the relative PPP. However, there are serious doubts on the monetary model's...
Saved in:
| Main Author: | |
|---|---|
| Other Authors: | |
| Format: | Final Year Project |
| Language: | English |
| Published: |
2014
|
| Subjects: | |
| Online Access: | http://hdl.handle.net/10356/59728 |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| Institution: | Nanyang Technological University |
| Language: | English |
| Summary: | This academic project examined the Purchasing Power Parity (PPP) model and the Monetary model for the Singapore-US exchange rate. Results of the cointegration analysis reveal that the exchange rate is in agreement with the relative PPP. However, there are serious doubts on the monetary model's ability to explain the movements of the Singapore-US exchange rate. Error correction models for both PPP and monetary models are presented to take into consideration of the short-run dynamics in modelling exchange rates. |
|---|