Preliminary communication

EXCHANGE RATE MOVEMENTS FROM 1961 TO 2001

Tihomir Janjiček ; Department of Economics and Business Economics, 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.

Keywords

exhange rate; marginal utility; government expenditure

Hrčak ID:

32550

URI

https://hrcak.srce.hr/32550

Publication date:

16.2.2009.

Article data in other languages: croatian

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