The Effect of Inflation Differential on the Nominal Exchange Rate: The Case of USA and Canada

Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00216224%3A14560%2F16%3A00089188" target="_blank" >RIV/00216224:14560/16:00089188 - isvavai.cz</a>
Result on the web
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DOI - Digital Object Identifier
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Result language
angličtina
Original language name
The Effect of Inflation Differential on the Nominal Exchange Rate: The Case of USA and Canada
Original language description
Macroeconomists from all over the world have always been interested in the influence of the inflation differential on the nominal exchange rate. This research paper focuses on the application of inflation differential theory to the US economy and one of its main trading partners - Canada. The primary aim of this paper was to prove that inflation differential affects the nominal exchange rate of the American dollar to the Canadian dollar. Secondary aim was to determine whether inflation differential and exchange rate depend on their previous values. This task was fulfilled by usage of VAR approach, which is considered to be standard econometric tool for stationary time series analysis. It was found out that inflation differential depends on its previous value, while exchange rate does not. Selected approach turned out to be unable to prove or disprove that inflation differential affects USD/CAD exchange rate.
Czech name
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Czech description
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Publication year
2016
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Article name in the collection
Proceedings of the 15th International Conference on Finance and Banking
ISBN
9788075101860
ISSN
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e-ISSN
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Number of pages
9
Pages from-to
422-430
Publisher name
Silesian University in Opava
Place of publication
Karviná
Event location
Praha
Event date
Jan 1, 2015
Type of event by nationality
WRD - Celosvětová akce
UT code for WoS article
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