negative relationship between the spot exchange rate (domestic-currency price of foreign currency) and the world, thereby justifying in economic modeling the treatment of foreign variables as being given. (Sarno and Taylor,. 2002). - 5 - The economics of exchange rates. Cambridge University. Press: Cambridge. Sarno, L., Taylor, M.P. and I. Chowdhury (2004), “Nonlinear dynamics in Finance a úvűr – Czech Journal of Economics and Finance, 53, 2003, ă. 3-4 of cointegration among nominal exchange rates and monetary funda- mentals during (Frankel – Rose, 1996), (Papell, 1997), and (Taylor – Sarno, 1998), ( Abuaf.