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On the relationship between the value of the mark and German production

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Abstract:

This study employs Johansen's cointegration technique to determine the long-run relationship between exchange value of the DM and German production. It is shown that depreciation of the DM has a long-run expansionary impact on German production. This conclusion is based on a new method of selecting the order of VAR and the appropriate cointegrating vector simultaneously.

Document Type: Research Article

DOI: https://doi.org/10.1080/00036840010012933

Publication date: 2001-10-10

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