The Methodology of the Relationship Study between Exchange Rate and Interest Rate in BRICs: Through UIP Channel
Nan Lin, Xiao-Fang Guo
Available Online September 2017.
- https://doi.org/10.2991/icsshe-17.2017.20How to use a DOI?
- uncovered interest parity, BRICs, modify model, exchange rate
- 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.
- Open Access
- This is an open access article distributed under the CC BY-NC license.
Cite this article
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 - 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 - https://doi.org/10.2991/icsshe-17.2017.20 ID - Lin2017/09 ER -