<abstract xml:lang="en" xmlns="http://www.w3.org/1999/xhtml"><p>The zloty/USD exchange rate is examined based on the Dornbusch model, the Bilson model, the Frenkel model, and the Frankel model. Empirical results show that the coefficient of the relative money supply is positive and significant, that the coefficient of the relative output is negative and significant, and that the Bilson model or the Frenkel model applies to Poland. Hence, the nominal exchange rate is positively affected by the relative interest rate and the relative expected inflation rate. The Balassa-Samuelson effect is confirmed in both models. The Bilson model has a smaller root mean squared error or mean absolute percent error than the Frenkel model.</p></abstract>

The zloty/USD exchange rate is examined based on the Dornbusch model, the Bilson model, the Frenkel model, and the Frankel model. Empirical results show that the coefficient of the relative money supply is positive and significant, that the coefficient of the relative output is negative and significant, and that the Bilson model or the Frenkel model applies to Poland. Hence, the nominal exchange rate is positively affected by the relative interest rate and the relative expected inflation rate. The Balassa-Samuelson effect is confirmed in both models. The Bilson model has a smaller root mean squared error or mean absolute percent error than the Frenkel model.

Application of Monetary Models of Exchange Rate Determination for Poland

Southeastern Louisiana University, Hammond, LA 70402, USA

South East European Journal of Economics and Business

{"article-title":"Application of Monetary Models of Exchange Rate Determination for Poland"}

The zloty/USD exchange rate is examined based on the Dornbusch model, the Bilson model, the Frenkel model, and the Frankel model. Empirical results show that...

Application of Monetary Models of Exchange Rate Determination for Poland

Pubblicato online: 22 dic 2008

Pagine: 19 - 24

DOI: https://doi.org/10.2478/v10033-008-0011-y

Parole chiave
Dornbusch model, Bilson model, Frenkel model, Frankel model, Balassa-Samuelson effect

This content is open access.

Application of Monetary Models of Exchange Rate Determination for Poland

Pubblicato online: 22 dic 2008

Pagine: 19 - 24

DOI: https://doi.org/10.2478/v10033-008-0011-y

Parole chiaveDornbusch model, Bilson model, Frenkel model, Frankel model, Balassa-Samuelson effect

This content is open access.

Parole chiave
Dornbusch model, Bilson model, Frenkel model, Frankel model, Balassa-Samuelson effect