Interest Rates and Exchange Rate Relationship in BRIC-T Countries

Article OPEN
Selim KAYHAN; Tayfur BAYAT; Ahmet UGUR;
  • Journal: Ege Academic Review,volume 13,issue 2,pages227-236
  • Subject: Interest rate, real exchange rate, BRIC-T, Frequency domain, nonlinear causality
    • jel: jel:F31 | jel:E52 | jel:E58

This study examines the dynamic relationships between the real exchange rate and the real interest rate in the BRIC-T (Brazil, Russia, India, China and Turkey) countries by employing monthly data from the beginning of flexible exchange rate regime to July 2011. For this... View more
  • References (12)
    12 references, page 1 of 2

    Phillips, P.C.B. ve Perron, P. (1988) “Testing for a Unit Root in Time Series Regressions” Biometrica, 75:335-346.

    Lahiri, A. ve Vegh, C.A. (2001) “On The Nonmonotonic Relation Between Interest Rates and The Exchange Rate” Macroeconomics Workshop, UCLA.

    Mark, N. C. ve Choi, D. Y. (1997) “Real Exchange Rate Prediction Over Long Horizons” Journal of International Economics, 43: 29-60.

    Meese, R.A. ve Rogof, K. (1988) “Was It Real? The Exchange Rate-interest Diferential Relation Over The Modern Floating Period” Journal of Finance 43(4):923- 948.

    Mundell, R.A. (1962) “The Appropriate Use of Monetary and Fiscal Policy Under Fixed Exchange Rates” IMF Staf Papers, 9(1):70-77.

    Pattanoik, S. ve Mitra, A. K. (2001) “Interest Rate Defence of Exchange Rate: Tale of The Indian Rupee” Economic and Political Weekly November, 24:4418-4427.

    Park, Y.C., Wang, Y. ve Chung, C.S. (1999) “Exchange Rate Policies in Korea: Has Exchange Rate Volatility Increased After The Crisis?” EABER Working Paper Series, No:367.

    Pindyck, R.S. ve Rotemberg, J. (1990) “The Excess Co-movement of Commodity Prices” The Economic Journal, 100:1173-1189.

    Reinhart, C.M. ve Reinhart, V.R. (2001) “What Hurts Most? G-3 Exchange Rate or Interest Rate Volatility” NBER Working Paper Series, No:8535.

    Sargent, T.J. ve Wallace, N. (1981) “Some Unpleasant Monetarist Arithmetic” Federal Reserve Bank of Minneapolis Quarterly Review, 5:1-18.

  • Metrics
    No metrics available
Share - Bookmark