The Monetary Model of Exchange Rate in the Sudan: An ARDL Bounds Testing Approach

Abstract

This study aims at examining the bound test of monetary model of exchange rate in the Sudan using an Autoregressive Distributed Lag (ARDL) approach. Quarterly readings of Exchange Rate, income, inflation rate and money demand in the Sudan covered the period from 2003:Q1 – 2016:Q2 has been used in the analysis of this study