International Journal of Business and Social Science

ISSN 2219-1933 (Print), 2219-6021 (Online) DOI: 10.30845/ijbss

The Impact of the Recession in the United States on the Price of US $ in Guyana
Jacqueline Murray

The study was undertaken to determine the impact of the recession in the United States on the spot (selling/ask) price of the United States Dollar (USD) in Guyana. The archival research method was used to gather the necessary data which was analysed using the Statistical Package for the Social Sciences version 15. Quarterly non-seasonally adjusted data for January 2006 to December 2008 (divided into pre crisis and crisis periods) of the logs of the Guyanese dollar to the United States dollar and logs of domestic and foreign variables export (Y, Y*); interest rates (i,i*)i and money supply – M2 (M, M*) were input into a regression equation and analysed using Ordinary Least Squares. The independent variables used corresponded to those identified by the monetary model with the exception that export values were used as approximations of income. The results of the crisis period were statistically insignificant at p > .05. Indicating that supply as denoted by money supply and demand as denoted by interest did not influence the spot price of the USD during the recession. In comparison, the pre-crisis results indicated that supply as denoted by money supply had a statistically significant influence on variations in the spot price of the USD.

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