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Exchange Rate Movements From 1961 To 2001

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  • Tihomir Janjicek

    (University of Dubrovnik)

Abstract

In this research I have tried to discover the relations between marginal utility on the one hand and government expenditure, real money balances and external habit on the other hand. I took two approaches one with exogenously missing markets but an endogenous discount rate, where anchors the distribution of wealth and one with endogenous market segmentation. No one of these approaches did not satisfied the theory and over identifying restrictions for every country. Only the utility with external habit persistence had the best match with real exchange rates for OECD countries between 1961 and 2001.

Suggested Citation

  • Tihomir Janjicek, 2008. "Exchange Rate Movements From 1961 To 2001," Economic Thought and Practice, Department of Economics and Business, University of Dubrovnik, vol. 17(2), pages 157-176, december.
    • Handle: RePEc:avo:emipdu:v:17:y:2008:i:2:p:157-176
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    References listed on IDEAS

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    More about this item

    Keywords

    exhange rate; marginal utility; government expenditure;
    All these keywords.

    JEL classification:

    • F31 - International Economics - - International Finance - - - Foreign Exchange

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