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Impactul modificării ratei dobânzii asupra cursului de schimb în România
[The impact of interest rates changes on the exchange rate in Romania]

Author

Listed:
  • Ghiba, Nicolae

Abstract

Connection between interest rate and foreign exchange is important because of the economic volatility of the two variables, which has an impact on several macroeconomic indicators: inflation, real income, exports and imports. This papers aims to establish a series of characteristics regarding the impact of interest rate in exchange rate volatility. This kind of analysis regarding the link between the interest rate differential and the exchange rate is called Uncovered Interest Parity. In Romania, the currency regime of managed floating with no preannounce path for the exchange rate and the inefficiency of exchange rate channel involves a poor relationship between exchange rate differential and exchange rate.

Suggested Citation

  • Ghiba, Nicolae, 2010. "Impactul modificării ratei dobânzii asupra cursului de schimb în România
    [The impact of interest rates changes on the exchange rate in Romania]
    ," MPRA Paper 28451, University Library of Munich, Germany, revised 27 Jan 2011.
  • Handle: RePEc:pra:mprapa:28451
    as

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    File URL: https://mpra.ub.uni-muenchen.de/28451/1/MPRA_paper_28451.pdf
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    File URL: https://mpra.ub.uni-muenchen.de/34721/1/MPRA_paper_34721.pdf
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    File URL: https://mpra.ub.uni-muenchen.de/34721/2/2010_IASI_FEAA_Impactul_modificarii_ratei_dobanzii_asupra_cursului_de_schimb_in_Romania.pdf
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    References listed on IDEAS

    as
    1. Guillermo A. Calvo & Carmen M. Reinhart, 2002. "Fear of Floating," The Quarterly Journal of Economics, Oxford University Press, vol. 117(2), pages 379-408.
    2. Maurice Obstfeld & Kenneth Rogoff, 2001. "The Six Major Puzzles in International Macroeconomics: Is There a Common Cause?," NBER Chapters,in: NBER Macroeconomics Annual 2000, Volume 15, pages 339-412 National Bureau of Economic Research, Inc.
    3. Catalina Handoreanu, 2008. "Interrelation Between The Exchange Rate And The Interest Rate In Romania," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 12(12(517)(s), pages 90-97, December.
    4. Ronald MacDonald, 1997. "What Determines Real Exchange Rates? The Long and Short of it," IMF Working Papers 97/21, International Monetary Fund.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    exchange rate; volatility; depreciation; appreciation; interest rate;

    JEL classification:

    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • F0 - International Economics - - General
    • F3 - International Economics - - International Finance
    • E4 - Macroeconomics and Monetary Economics - - Money and Interest Rates
    • F31 - International Economics - - International Finance - - - Foreign Exchange

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