Modeling the Exchange Rate of the Jordanian Dinar and US Dollar against the Israeli Sheikl
2008, Volume 30, Issue 89, Pages 9-16
In this empirical study, modeling the exchange rate of the Jordanian Dinar and US Dollar against the Israeli Sheikl is done by using the ARIMA and Transfer Function models. I demonstrated the importance of outlier detection and adjustment through the parameters significances and the moderate change in forecasted values. I come up with the conclusion that the transfer function forecasts better track the data as compared to the ARIMA forecasts. By this study, I added new empirical evidence on the important of transfer function modeling that is forward-looking. It will capture both the immediate and longer term effects of intervention.
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