Eco

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What is the exchange rate ? • An exchange rate is the rate at which one would need to exchange one’s currency for the currency of another country. • Allows for the conversion of one country's currency into that of another • Allows price comparison of similar goods in different countries.

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Eco

Transcript of Eco

Page 1: Eco

What is the exchange rate ?

• An exchange rate is the rate at which one would need to exchange one’s currency for the currency of another country.

• Allows for the conversion of one country's currency into that of another

• Allows price comparison of similar goods in different countries.

Page 2: Eco

Model Specification• Dependent variable: Exchange rate

• Independent variables: Vietnam interest rate US interest rate Money supply Trade per GDP

• Dummy variable: D=0 if 1993-2006

D=1 if 2007-2013

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Model Specification


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