01427cas a2200253 a 4500 AALejournalIMF004972 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451869354 1018-5941 BD-DhAAL BD-DhAAL Cerra, Valerie. The Monetary Model Strikes Back : Evidence from the World / Valerie Cerra, Sweta Saxena. Washington, D.C. : International Monetary Fund, 2008. 1 online resource (41 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 We revisit the dramatic failure of monetary models in explaining exchange rate movements. Using the information content from 98 countries, we find strong evidence for cointegration between nominal exchange rates and monetary fundamentals. We also find fundamentalsbased models very successful in beating a random walk in out-of-sample prediction. Mode of access: Internet Saxena, Sweta. IMF Working Papers; Working Paper ; No. 2008/073 Full text available on IMF http://elibrary.imf.org/view/journals/001/2008/073/001.2008.issue-073-en.xml IMF e-Library