01919cas a2200265 a 4500 AALejournalIMF001807 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451847024 1018-5941 BD-DhAAL BD-DhAAL Isard, Peter. Exchange Rates, Country Preferences, and Gold / Peter Isard, Mark Taylor, Michael Dooley. Washington, D.C. : International Monetary Fund, 1992. 1 online resource (30 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper provides indirect tests of the hypothesis that exchange rate movements may be largely coterminus with changes in preferences for holding claims on different countries. It is argued that changes in country preferences will be reflected systematically in the price of gold and, hence, that gold price movements, under the maintained hypothesis, should have explanatory power with respect to exchange rate movements over and above the effects of monetary shocks. The paper applies multivariate vector autoregression and cointegration modeling techniques to test for the short-and long-run influence of gold prices on exchange rates conditional on other monetary and real macroeconomic variables, and applies the resulting error correction exchange rate equation to out-of-sample forecasting exercises. Mode of access: Internet Dooley, Michael. Taylor, Mark. IMF Working Papers; Working Paper ; No. 1992/051 Full text available on IMF http://elibrary.imf.org/view/journals/001/1992/051/001.1992.issue-051-en.xml IMF e-Library