The U.S. Budget Deficit, Inflation and Exchange Rate

Published: Jan 1, 2011
Abstract
This study further contributes to the literature by applying ARDL and error correction models to the U.S. data between 1973 and 2010 to find the relationship and the effect of the U.S. budget deficit and inflation on the exchange rate. The conclusions reveal that there is a significant relationship between inflation and exchange rate. Inflation causes the dollar to depreciate in both short and long run. However, that there is no significant and...
Paper Details
Title
The U.S. Budget Deficit, Inflation and Exchange Rate
Published Date
Jan 1, 2011
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