Robert M. La Follette School of Public Affairs

Private Information and the Monetary Model of Exchange Rates: Evidence from a Novel Data Set

The authors propose an exchange rate model which is a hybrid of the conventional monetary specification and the Evans-Lyons microstructure approach. It argues that the failure of the monetary model is principally due to private preference shocks which render the demand for money unstable.

Additional Info

  • Volume or issue no.: La Follette School Working Paper No. 2008-011
  • Author(s): Menzie D. Chinn and Michael J. Moore