Asymmetrical Effects of Real Exchange Rate Volatility during Covid-19 Pandemic on the Demand for Money in Zimbabwe

Upenyu Sakarombe, Rudo Makoni-Marimbe, Lloyd Badze
{"title":"Asymmetrical Effects of Real Exchange Rate Volatility during Covid-19 Pandemic on the Demand for Money in Zimbabwe","authors":"Upenyu Sakarombe, Rudo Makoni-Marimbe, Lloyd Badze","doi":"10.56279/ter.v11i2.83","DOIUrl":null,"url":null,"abstract":"The understanding of symmetrical or asymmetrical effects of exchange rate volatility improves the effectiveness of macroeconomic management policies. This study examines the long-run asymmetrical effects of exchange rate volatility on real demand for money in Zimbabwe, using monthly data from January 2018 to September 2020. Exchange rate shocks are calculated by decomposing exchange rate volatility measure into positive and negative components to examine their short-run and long-run effects and to determine whether the long-run effects of the components of exchange rate movements are symmetrical or asymmetrical. The linear ARDL and the non-linear ARDL models are estimated. The study employs the F-bounds test to confirm the longrun relationship and the Wald test for the asymmetrical effect. The results show that exchange rate depreciation in Zimbabwe has symmetrical effects on real demand for money. Thus, exchange rate policies in Zimbabwe should assume linearity in the passthrough effects on real demand for money. JEL Classification: E41; E52; E6","PeriodicalId":91807,"journal":{"name":"Tanzanian economic review","volume":"15 1","pages":""},"PeriodicalIF":0.0000,"publicationDate":"2022-02-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Tanzanian economic review","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.56279/ter.v11i2.83","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"","JCRName":"","Score":null,"Total":0}
引用次数: 0

Abstract

The understanding of symmetrical or asymmetrical effects of exchange rate volatility improves the effectiveness of macroeconomic management policies. This study examines the long-run asymmetrical effects of exchange rate volatility on real demand for money in Zimbabwe, using monthly data from January 2018 to September 2020. Exchange rate shocks are calculated by decomposing exchange rate volatility measure into positive and negative components to examine their short-run and long-run effects and to determine whether the long-run effects of the components of exchange rate movements are symmetrical or asymmetrical. The linear ARDL and the non-linear ARDL models are estimated. The study employs the F-bounds test to confirm the longrun relationship and the Wald test for the asymmetrical effect. The results show that exchange rate depreciation in Zimbabwe has symmetrical effects on real demand for money. Thus, exchange rate policies in Zimbabwe should assume linearity in the passthrough effects on real demand for money. JEL Classification: E41; E52; E6
Covid-19大流行期间实际汇率波动对津巴布韦货币需求的不对称影响
对汇率波动的对称或不对称效应的理解提高了宏观经济管理政策的有效性。本研究使用2018年1月至2020年9月的月度数据,考察了汇率波动对津巴布韦实际货币需求的长期不对称影响。汇率冲击是通过将汇率波动度量分解为正分量和负分量来计算的,以检查其短期和长期影响,并确定汇率变动分量的长期影响是对称的还是不对称的。对线性ARDL模型和非线性ARDL模型进行了估计。本研究采用f界检验来证实长期关系,采用Wald检验来证实不对称效应。结果表明,津巴布韦的汇率贬值对实际货币需求有对称的影响。因此,津巴布韦的汇率政策应该假设对货币实际需求的传递效应是线性的。JEL分类:E41;E52;E6
本文章由计算机程序翻译,如有差异,请以英文原文为准。
求助全文
约1分钟内获得全文 求助全文
来源期刊
自引率
0.00%
发文量
0
×
引用
GB/T 7714-2015
复制
MLA
复制
APA
复制
导出至
BibTeX EndNote RefMan NoteFirst NoteExpress
×
提示
您的信息不完整,为了账户安全,请先补充。
现在去补充
×
提示
您因"违规操作"
具体请查看互助需知
我知道了
×
提示
确定
请完成安全验证×
copy
已复制链接
快去分享给好友吧!
我知道了
右上角分享
点击右上角分享
0
联系我们:info@booksci.cn Book学术提供免费学术资源搜索服务,方便国内外学者检索中英文文献。致力于提供最便捷和优质的服务体验。 Copyright © 2023 布克学术 All rights reserved.
京ICP备2023020795号-1
ghs 京公网安备 11010802042870号
Book学术文献互助
Book学术文献互助群
群 号:604180095
Book学术官方微信