An econometric analysis of the USD/GBP exchange rate using a Vector Error Correction Model (VECM). The study applies ADF unit root tests, Johansen cointegration, VAR lag selection, Wald causality tests, diagnostic analysis, and forecast evaluation to examine long-run equilibrium, short-run dynamics, and exchange rate predictability.
econometrics exchange-rates forecasting data-analysis r-programming time-series-analysis statistical-modeling vector-autoregression monetary-economics vector-error-correction-model macroeconomic-analysis johansen-cointegration exchange-rate-modeling
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Updated
Jul 3, 2026