Some Empirical Evidence on the Effects of Shocks to Monetary Policy on Exchange Rates

Clicks: 2
ID: 296528
1995
Article Quality & Performance Metrics
Overall Quality
Not rated
Combines reader engagement with the AI quality analysis. This article has not been analysed, so there is no overall score — reader engagement is measured and shown alongside.
AI Quality Assessment
Not analyzed
Readership in this journal
Emerging

Ranked #428 of 441 articles by views in the quarterly journal of economics

Most read Least read

Bar heights use a square-root scale. Only the 120 most-read articles are drawn; the journal has 441 in total.

Mint this article as an NFT
Not yet minted

Create a permanent, verifiable on-chain record of this article on the Scimatic Network. The NFT is held in your Journament account, and you can withdraw it to your own wallet at any time.

5 SUSD one-off · no wallet required
Abstract
This paper investigates the effects of shocks to U. S. monetary policy on exchange rates. We consider three measures of these shocks: orthogonalized shocks to the federal funds rate, orthogonalized shocks to the ratio of nonborrowed to total reserves and changes in the Romer and Romer index of monetary policy. In sharp contrast to the literature, we find substantial evidence of a link between monetary policy and exchange rates. Specifically, according to our results a contractionary shock to U. S. monetary policy leads to (i) persistent, significant appreciations in U. S. nominal and real exchange rates and (ii) significant, persistent deviations from uncovered interest rate parity in favor of U. S. interest rates.
Reference Key
openalex_W2035387744 Use this key to autocite in the manuscript while using SciMatic Manuscript Manager or Thesis Manager
Authors Martin Eichenbaum, Charles L. Evans
Journal the quarterly journal of economics
Year 1995
DOI
10.2307/2946646
URL
Keywords Keywords not found

Citations

No citations found. To add a citation, contact the admin at info@scimatic.org

No comments yet. Be the first to comment on this article.