Since the euro debuted, the value of the dollar has had a varied history in the world market. This presentation examines work in progress on a study of how world oil production affects the U.S. dollar’s exchange rate. In my work I have pegged the dollar against the euro for statistical ease, each month from 2001 through fall 2007. By controlling for general determinants of exchange rates I have examined the marginal effects of world oil production on this exchange rate.
The presentation first looks at reasons why this type of analysis may be useful and to whom, and then looks through a brief literature review of material similar to this topic. A discussion of statistical methods and results will follow. Finally, implications of current results and directions of further research will be presented.
Nicholas Berry, ’08 Swisher, IA
Major: Economics and Business
Sponsor: Todd Knoop