Exchange Rates and Monetary Fundamentals: What Do We Learn from Linear and Nonlinear Regressions?

Table 6

Tests of exclusion rRestrictions.

	Japanese yen/USD	Euro/US dollar
Money supplies	7.6256 [0.022086]	19.129 [0.000070]
Outputs	12.669 [0.001773]	12.129 [0.001515]
Interest rates	11.290 [0.003534]	7.5082 [0.023431]

Notes: this table reports the series exclusion tests on the monetary model normalized on the exchange rate; the numbers outside of the parenthesis are statistics and the numbers in square brackets are marginal significance levels.