Interrelation Between The Exchange Rate And The Interest Rate In Romania
Lately, the connection between the exchange rate and interest rate has once again caught the attention of the researchers. The volatility of the two macroeconomic indicators has an almost simultaneous effect on the inflation, real income, exports and imports, which influence the long-term development. This working paper analyses, besides the UIP hypothesis, the reverse relationship of the exchange rate on the interest rate as this paper sets out to determine the role of Romanian exchange rate on achieving macroeconomic stability.
Volume (Year): 12(517)(supplement) (2008)
Issue (Month): 12(517)(supplement) (December)
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