Test of Exchange Rate Determination Models

This book is derived from a doctoral thesis on exchange rate determination models in Türkiye. Exchange rate is defined as the price of a country's currency in terms of another country's currency. Economic managers make choices among alternative exchange rate strategies according to the economic policy strategy they have established. In this context, which exchange rate strategy to be chosen is very important as it will lead to different national and international economic policy implications. Exchange rate regime selection has always been one of the most important issues in international macroeconomics. In this book, different exchange rate determination models in Türkiye were tested with econometric analyses and an attempt was made to determine which model was valid for Türkiye.