ABSTRACT
The author of this chapter analyses the degree to which the policy of the eurozone monetary authorities explained fluctuations of the EUR/USD rate of exchange in 1999–2019. The time of the financial and fiscal crisis, when the European Central Bank applied the policy of quantitative easing, seems of particular interest. For the purpose of more accurate analysis and interpretation of the study, the research period is divided into three parts, prior to, during, and after the crisis, therefore. The VAR econometric model is used to determine the force and time of response of the EUR/USD rate of exchange to monetary impulses, especially at the time of the disturbances. Results of the model estimation indicate the EUR/USD rate of exchange responded in similar ways to the decisions made as part of the ECB’s monetary policy in the entire period, with the force and time of reaction showing scarce differences during the financial and fiscal crisis.
