Centre
for Development Economics
and
Department of Economics, Delhi School of Economics
ANNOUNCE A SEMINAR
The Monetary Model Strikes Back: Evidence from the World
by
Sweta
C. Saxena
Bank for International Settlements, Basel, Switzerland
On Thursday, March 13, 2008 at 11:40 a.m.
Venue : Seminar Room [First Floor]
Department of Economics, Delhi School of Economics
All are cordially invited
Abstract
We revisit the dramatic failure of monetary models in explaining exchange rate movements. Using the information content from 98 countries, we find strong evidence for cointegration between nominal exchange rates and monetary fundamentals. We also find fundamentals-based models very successful in beating a random walk in out-of-sample prediction.