The price of gold and the exchange rate

Article Abstract:

A study was conducted on the theoretical relationship between the major exchange rates and internationally-traded commodity prices. The case of gold was examined using forecast error data. The results indicate that floating exchange rates among the major currencies have been a key source of price instability in the world gold market since the dissolution of the Bretton Woods International monetary system. Furthermore, movements of European currency prices have significant effects on the price of gold in other currencies.

Gold Ore Mining, Gold ores, Gold Bullion, Monetary Gold Reserves, Gold

---

Explaining exchange rate volatility: an empirical analysis of 'the holy trinity' of monetary independence, fixed exchange rates, and capital mobility

Article Abstract:

A study was conducted on exchange rate volatility, particularly on potential tradeoffs between fixed exchange rates, independent monetary policy and capital mobility. A panel of data was gathered from 22 countries between 1967 and 1992 and monetary models were used to parameterize monetary divergence and to conduct a factor analysis to measure capital mobility. The results indicate that exchange rate volatility is loosely associated with monetary divergence and the degree of capital mobility.

Economic Programs, Administration of Economic Programs, Economic policy, Capital movements

---

On exchange rates, nominal and real

Article Abstract:

The creation of the Swiss floating exchange rate proved to be beneficial in terms of protecting the Swiss economy against external price shocks. Such protection results as movements in the nominal exchange rate, which occurs due to external price shocks. These create direct and immediate effects on the purchasing power parity (PPP) real exchange rate. It was further observed that a 10% increase in price index results to a revaluation of about 5%.

Exchange Rates, Models, Economic aspects, Switzerland

Similar abstracts:

• Abstracts: Productivity and the euro-dollar exchange rate. Choice of exchange rate regime in transition economies: an empirical analysis
• Abstracts: Central bank intervention and the volatility of foreign exchange rates: evidence from the options market. Measuring the degree of exchange market intervention in a small open economy

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.