Exogeneity in a recent exchange rate model: A response to MacDonald and Ricci
Date
2005
Authors
Du Plessis S.A.
Journal Title
Journal ISSN
Volume Title
Publisher
Abstract
MacDonald and Ricci (2004) recently proposed an econometric model for the real effective exchange rate of the Rand. However, the real exchange rate is weakly exogenous in their model, implying that feedback to disequilibria in their model does not occur significantly via the exchange rate. Though MacDonald and Ricci (2004) have estimated an equilibrium relationship to which the real exchange rate contributes, their model does not qualify as a model for the real effective exchange rate of the Rand. © 2005 Economic Society of South Africa.
Description
Keywords
econometrics, exchange rate, model
Citation
South African Journal of Economics
73
4
73
4