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U.S. MILITARY EXPENDITURE AND THE DOLLAR
Author(s) -
Grilli VITTORIO,
Beltratti ANDREA
Publication year - 1989
Publication title -
economic inquiry
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.823
H-Index - 72
eISSN - 1465-7295
pISSN - 0095-2583
DOI - 10.1111/j.1465-7295.1989.tb00799.x
Subject(s) - economics , liberian dollar , exchange rate , monetary economics , us dollar , econometrics , finance
This paper examines the connection between U.S. military expenditure and the dollar‐mark real exchange rate. Quarterly data for the period 1951.1–1986.3 are used to show that there exists a significant relationship linking real exchange rate, real military spending, and real GNP. The conclusion is based on evidence that these three variables are cointegrated.