The Methodology of the Relationship Study between Exchange Rate and Interest Rate in BRICs: Through UIP Channel

DOI

10.2991/icsshe-17.2017.20How to use a DOI?

Keywords

uncovered interest parity, BRICs, modify model, exchange rate

Abstract

This paper aims to demonstrate the methodology to study the relationship between Exchange Rate and Interest Rate about BRICs. The purpose of this research is to investigate the application of the traditional UIP in BRICs countries. If the UIP does not work, the model could be tried to modify. The methodology includes the typical ADF test, cointegration test, VECM and Granger causality test. It will be useful to demonstrate the real relationship between exchange rate and interest rate in BRICs. And the BRICs can adjust the monetary policies based on the results.

Copyright

© 2017, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Nan Lin
AU  - Xiao-Fang Guo
PY  - 2017/09
DA  - 2017/09
TI  - The Methodology of the Relationship Study between Exchange Rate and Interest Rate in BRICs: Through UIP Channel
BT  - Proceedings of the 2017 3rd International Conference on Social Science and Higher Education
PB  - Atlantis Press
SP  - 78
EP  - 81
SN  - 2352-5398
UR  - https://doi.org/10.2991/icsshe-17.2017.20
DO  - 10.2991/icsshe-17.2017.20
ID  - Lin2017/09
ER  -