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This paper investigates the impact of the monetary base on exchange rates using data from the U.S. and Germany from 2005 to 2015. The findings indicate that changes in the monetary base do not significantly explain exchange rate fluctuations, with interest rates being a better predictor. The study concludes that the strict monetary approach to exchange rates may be too rigid to account for the complexities of exchange rate behavior.

Author

canecorso1202

Language

EN