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Varför är den svenska kronan svag?

Larsson, Amelia LU and Jakobsson, Sigrid (2019) NEKH01 20182
Department of Economics
Abstract
During the last few years the Swedish currency has depreciated against the Euro and the US-dollar, despite the Swedish economy growing faster than expected. Disagreement in prior research regarding exchange rate fluctuations among with the situation in Sweden, is the motivation behind this report. This paper examines the factors responsible for the depreciation of the Swedish Krona in 2018, based on four different hypotheses. The results of this paper found that certain macroeconomic factors have significant influence on exchange rates. The inflation rate in large economies tends to have a substantial impact on exchange rates in smaller economies. Furthermore, the exchange rate in the previous month according to the regression model used,... (More)
During the last few years the Swedish currency has depreciated against the Euro and the US-dollar, despite the Swedish economy growing faster than expected. Disagreement in prior research regarding exchange rate fluctuations among with the situation in Sweden, is the motivation behind this report. This paper examines the factors responsible for the depreciation of the Swedish Krona in 2018, based on four different hypotheses. The results of this paper found that certain macroeconomic factors have significant influence on exchange rates. The inflation rate in large economies tends to have a substantial impact on exchange rates in smaller economies. Furthermore, the exchange rate in the previous month according to the regression model used, tends to affect the current exchange rate. On top of this, the level of foreign investment, international insecurity, and interest rates also contribute to fluctuating exchange rates. It is complicated to construct models to determine exchange rates due to the high number of variables that are expected to affect exchange rates among with the frequent fluctuations. Despite the difficulty, this paper gives some indication as to why the Swedish Krona depreciated in 2018. (Less)
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author
Larsson, Amelia LU and Jakobsson, Sigrid
supervisor
organization
alternative title
En studie som undersöker vad som bestämmer växelkursen
course
NEKH01 20182
year
type
M2 - Bachelor Degree
subject
keywords
Exchange rate, Swedish currency, inflation, interest rate, international insecurity and investments.
language
Swedish
id
8972153
date added to LUP
2019-03-05 09:03:47
date last changed
2019-03-05 09:03:47
@misc{8972153,
  abstract     = {During the last few years the Swedish currency has depreciated against the Euro and the US-dollar, despite the Swedish economy growing faster than expected. Disagreement in prior research regarding exchange rate fluctuations among with the situation in Sweden, is the motivation behind this report. This paper examines the factors responsible for the depreciation of the Swedish Krona in 2018, based on four different hypotheses. The results of this paper found that certain macroeconomic factors have significant influence on exchange rates. The inflation rate in large economies tends to have a substantial impact on exchange rates in smaller economies. Furthermore, the exchange rate in the previous month according to the regression model used, tends to affect the current exchange rate. On top of this, the level of foreign investment, international insecurity, and interest rates also contribute to fluctuating exchange rates. It is complicated to construct models to determine exchange rates due to the high number of variables that are expected to affect exchange rates among with the frequent fluctuations. Despite the difficulty, this paper gives some indication as to why the Swedish Krona depreciated in 2018.},
  author       = {Larsson, Amelia and Jakobsson, Sigrid},
  keyword      = {Exchange rate,Swedish currency,inflation,interest rate,international insecurity and investments.},
  language     = {swe},
  note         = {Student Paper},
  title        = {Varför är den svenska kronan svag?},
  year         = {2019},
}