Hello,

In my thesis I am researching the effect of the policy of the FED on the emerging markets in South-America (12 countries) from 2000 till 2014.

The effect is measured in economic growth of the EM and the exhange rate of their currency against the US dollar (so these are the 2 dependable variables). (Both of them are per country (12))

I have 2 explaining variables. Those 2 are the intrest rate of the FED and the amount of money they issue (money base to be specific).

I also have 3 control variables that are, according to the literature significant for the economic growth. Those 3 are : inflation, governement expenditure and direct foreign investments as a % of their gdp. (All 3 of them are per country(12))

The problem is that monthly data is very hard to find, so I've chosen for yearly data. There are no missing values.

Now the question is : is this enough to get some conclusions or are the results that I can get out of this regression untrustworthy?

I thank you in advance!

With kind regards

Filip Dhondt