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U.S. Military Expenditure and the Dollar

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  • Grilli, Vittorio
  • Beltratti, Andrea

Abstract

This paper examines the connections between U.S. military expenditure and the dollar-mark real exchange rate. Quarterly data for the period 1951.1-1983.3 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. Copyright 1989 by Oxford University Press.

Suggested Citation

  • Grilli, Vittorio & Beltratti, Andrea, 1989. "U.S. Military Expenditure and the Dollar," Economic Inquiry, Western Economic Association International, vol. 27(4), pages 737-744, October.
    • Handle: RePEc:oup:ecinqu:v:27:y:1989:i:4:p:737-44
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    Cited by:

    1. Kholdy, Shady & Sohrabian, Ahmad, 1995. "Testing for the relationship between nominal exchange rates and economic fundamentals," Global Finance Journal, Elsevier, vol. 6(2), pages 121-134.

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