The Monetary Approach to Exchange Rates and the Canadian Dollar over the Long Run

18 Pages Posted: 5 Nov 2004  

Bill B. Francis

University of South Florida - College of Business Administration

Iftekhar Hasan

Gabelli School of Business, Fordham University; Bank of Finland

James R. Lothian

Gabelli School of Business, Fordham University; National Bureau of Economic Research (NBER)

Abstract

Using Canadian-U.S. dollar data this paper examines the question of whether recent positive findings with regard to purchasing power parity carry over to the monetary approach to exchange rates. The evidence provides strong support for the long-run monetary model of exchange rates. At the same time, it provides indirect evidence in favor of long-run purchasing power parity between the U.S. dollar and the Canadian dollar during the sample period.

Suggested Citation

Francis, Bill B. and Hasan, Iftekhar and Lothian, James R., The Monetary Approach to Exchange Rates and the Canadian Dollar over the Long Run. Applied Financial Economics, October 2001. Available at SSRN: https://ssrn.com/abstract=613908

Bill B. Francis

University of South Florida - College of Business Administration ( email )

4202 E. Fowler Avenue, BSN 3403
Dept. of Finance
Tampa, FL 33620-5500
United States
813-974-6300 (Phone)
813-974-3030 (Fax)

HOME PAGE: http://www.coba.usf.edu/departments/finance/facult

Iftekhar Hasan

Gabelli School of Business, Fordham University ( email )

Rose Hill Campus Bronx
New York, NY 10458
United States

Bank of Finland ( email )

P.O. Box 160
Helsinki 00101
Finland

James R. Lothian (Contact Author)

Gabelli School of Business, Fordham University ( email )

113 West 60th Street
New York, NY 10023
United States
212-636-6147 (Phone)
212-765-5573 (Fax)

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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