the impact of monetary policies on the exchange rate: a gmm approach

نویسندگان

amir khordehfrosh dilmaghani

amir mansour tehranchian

چکیده

t his paper investigates the impact of monetary policies on the exchange rate of selected developing countries during the period 2001-2010. for this purpose, in addition to the theoretical explanation, dynamic panel data based on the generalized method of moments (gmm) have been used to estimate the model. our findings indicate that the lag of exchange rate variable has a positive and significant effect on the exchange rate. this result reflects the dynamics of the exchange rate over time. additionally, this paper indicates that the coefficient of liquidity as an indicator of monetary policy is positive and significant. moreover, gdp, inflation, and exports of goods and services have negative, positive, and negative effects on the exchange rate, respectively, and all are statistically significant. paying more attention to the exchange rate and the optimal control of liquidity in the economy is suggested as a policy recommendation in this research.

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عنوان ژورنال:
iranian economic review

ناشر: university of tehran

ISSN 1026-6542

دوره 19

شماره 2 2015

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