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Moldovan, P., Lagoa, S. & Mendes, D. (2025). The impact of economic policy uncertainty on the real exchange rate: Evidence from the UK. International Journal of Economics and Business Research. 29 (1), 28-50
P. C. Moldovan et al., "The impact of economic policy uncertainty on the real exchange rate: Evidence from the UK", in Int. Journal of Economics and Business Research, vol. 29, no. 1, pp. 28-50, 2025
@article{moldovan2025_1764999329352,
author = "Moldovan, P. and Lagoa, S. and Mendes, D.",
title = "The impact of economic policy uncertainty on the real exchange rate: Evidence from the UK",
journal = "International Journal of Economics and Business Research",
year = "2025",
volume = "29",
number = "1",
doi = "10.1504/IJEBR.2023.10046502",
pages = "28-50",
url = "https://www.inderscience.com/jhome.php?jcode=ijebr"
}
TY - JOUR TI - The impact of economic policy uncertainty on the real exchange rate: Evidence from the UK T2 - International Journal of Economics and Business Research VL - 29 IS - 1 AU - Moldovan, P. AU - Lagoa, S. AU - Mendes, D. PY - 2025 SP - 28-50 SN - 1756-9850 DO - 10.1504/IJEBR.2023.10046502 UR - https://www.inderscience.com/jhome.php?jcode=ijebr AB - The world economy has been punctuated by uncertainty in recent years, as a result of the 2008 subprime crisis, the European sovereign debt crisis, Brexit, and the 2016 US presidential elections, to mention but a few of the reasons. This study explores how the UK real exchange rate reacts to economic policy uncertainty (EPU) shocks using monthly data for the period 1998 to 2020. We contribute to the literature by identifying the long-run and short-run impacts of EPU using a cointegrated ARDL model, and by studying a country that has been through periods of both relatively low and high uncertainty. Results confirm that EPU has an important effect in the long run by depreciating the exchange rate. In addition to urging policymakers and regulators to keep policy uncertainty to a minimum as a way of sustaining exchange rate stability and thus promoting long-term economic growth, further evidence is provided on exchange rate fundamentals. ER -
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