@article{Exchange:687,
      recid = {687},
      author = {Amano, Robert and van Norden, Simon},
      title = {Oil Prices and the Rise and Fall of the U.S. Real Exchange  Rate},
      publisher = {Bank of Canada},
      address = {1993},
      pages = {1 online resource (v, 28 pages)},
      abstract = {We examine whether a link exists between oil price shocks  and the U.S. real effective exchange rate. The results show  that the two variables appear to be cointegrated and that  causality runs from oil prices to the exchange rate and not  vice versa. The single-equation error-correction model  linking these two variables is stable and captures much of  the in- and out-of sample movement in the exchange rate in  dynamic simulations. Finally, tests we present show that  the error-correction model has significant post-sample  predictive ability for both the size and sign of changes in  the real effective exchange rate. The results suggest that  oil prices may have been the dominant source of persistent  real exchange rate shocks over the post-Bretton Woods  period and that energy prices may have important  implications for future work on exchange rate behaviour.},
      url = {http://www.oar-rao.bank-banque-canada.ca/record/687},
      doi = {https://doi.org/10.34989/swp-1993-15},
}