Annals of Dunarea de Jos University. Fascicle I : Economics and Applied Informatics (Dec 2015)
Matlab Simulations of Exchange Rate Behavior using a Monetary Model with Flexible Prices
Abstract
This paper aims to create a short summary of theories on exchange rate formation mechanism and illustrating the connection between domestic and foreign interest rates and the exchange rate. For this we chose a monetary model with flexible prices, with which we traced the evolution trajectories of the exchange rate, under the influence of internal and external factors.