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What Is The Exchange Rate ?

The exchange rate is the rate at which one currency can be converted into another. It allows comparison of prices between countries and conversion of one country's currency into another's. The document presents a model to analyze exchange rates with the dependent variable being the exchange rate and independent variables including interest rates, money supply, trade per GDP, and a dummy variable to distinguish between time periods of 1993-2006 and 2007-2013.

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Quyên Hoàng
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20 views

What Is The Exchange Rate ?

The exchange rate is the rate at which one currency can be converted into another. It allows comparison of prices between countries and conversion of one country's currency into another's. The document presents a model to analyze exchange rates with the dependent variable being the exchange rate and independent variables including interest rates, money supply, trade per GDP, and a dummy variable to distinguish between time periods of 1993-2006 and 2007-2013.

Uploaded by

Quyên Hoàng
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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What is the exchange rate ?

An exchange rate is the rate at which one


would need to exchange ones currency for the
currency of another country.
Allows for the conversion of one country's
currency into that of another
Allows price comparison of similar goods in
different countries.

Model Specification
Dependent variable: Exchange rate
Independent variables:
Vietnam interest rate
US interest rate
Money supply
Trade per GDP
Dummy variable: D=0 if 1993-2006
D=1 if 2007-2013

Model Specification

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