965 research outputs found
The Value of Currency
published or submitted for publicatio
The return of Keynes
Skidelskyâs last work « The Return of the Masterâ gives a new perspective to his previous studies about J.M. Keynes. In this new light, he studies the Keynesian theories, no longer in the historical context in which they were developed, but using them to explain and to try to find a solution to modern economy. This work almost represents a denunciation towards the new economic theory system that loses sight of the importance of the uncertainty, and overestimated the value of currency, and have not considered other values such as ethics and morals.the return of Keynes's Theory
Does the Value of Currency Affect the Numbers of International InboundTourists to Turkey?
This study examined the effect of the value of the currency on international inbound tourist numbers toTurkey from Germany and Russia, which are the top two tourist generating countries for Turkey. Two differentTurkish Lira regimes are investigated with Threshold Vector Autoregressive (Threshold-VAR) models, using thereal broad effective exchange rate for Turkey as a threshold variable. The endogenous variables vectors are themacroeconomic variables of the tourist origin countries: the real broad effective exchange rate, consumer priceindex ratio (proxying for the price level), and total industry production (proxying for income level) for Germanyand Russia. Because of data constraints, the estimated Threshold-VAR models for Germany and Russia covereddifferent periods in 1997:01-2020:05 and 2000:01-2020:05, respectively. The key finding for both policymakersand tourism researchers is that when travels become cheaper in the Turkish Lira, this does not always attractmore foreign tourists to Turkey
Exchange Rate Behaviour after Recent Float: The Experience of Pakistan
Exchange rate is a price of traded goods in the world market.
To maintain the commodities competitive in the market, exchange rate
should be adjusted according to the change in prices. If it is adjusted
accordingly, then we say that purchasing power parity (PPP) holds in
that country. However, phenomenon of PPP is completely kicked out under
floating exchange rate regime in the short run [see for example, Rogoff
(1999); Mark and Choi (1997); MacDonald (1999); Obstfeld and Taylor
(1997); Coleman (1995); OâConnel (1998) and Michael, et al. (1997)].
Recent statement by the President of the National Bank of Pakistan, that
the exchange rate and the interest rate are two faces of the same coin
[Bokhari (2004)], shows that the changes in the exchange rate is
strongly associated with the changes in the interest rate differential.1
It is also argued that under free float the value of currency is
determined by demand and supply of foreign exchange and to control the
value of currency using open market operations interest rate is used as
the key monetary policy tool. Moreover, deterioration of trade balance
leads to deprecation in exchange to make the exports competitive in the
market and vice versa
THE PRICE OF OPTIONS ILLIQUIDITY
The purpose of this paper is to examine the effect of illiquidity on the value of currency options. We use a unique data set which allows us to explore this issue in special circumstances where options are issued by a central bank and are not traded prior to maturity. The value of these options is compared to similar options traded on the exchange. We find that the non-tradable options are priced about 21 percent less than the exchange traded options. This gap cannot be arbitraged away due to transactions costs and the risk that the exchange rate will change during the bidding process
Financial Market Integration in Pakistan: Evidence Using Post-1999 Data
The recent wave of financial sector reforms and
internationalisation in emerging markets has increased perceived
interlinkages within various sectors of national financial markets. For
example, the existence of a strong linkage between stock prices and
exchange rates is a popular topic in academic research. Similarly,
changes in stock prices and exchange rates are expected to influence
movements in interest rates. A number of hypotheses suggest such a
causal relationship. For instance, using a goods market approach, any
changes in the value of currency would affect the competitiveness of
multinational firms and hence influence stock prices [Dornbusch and
Fischer (1980)]. Similarly, the hypotheses of âexchange rate
pass-throughâ and âinterest rate pass-throughâ suggest that changes in
exchange rates and/or interest rates could affect stock prices. The
portfolio balance model suggests that fluctuations in stock prices
influence exchange rate changes
About the Contributors to Library Trends 45 (2) Fall 1996: Navigating Among the Disciplines: The Library and Interdisciplinary Inquiry
published or submitted for publicatio
Metode Peramalan Dengan Menggunakan Model Volatilitas Asymmetric Power Arch (Aparch)
Exchange rate can be defined as a ratio the value of currency. The exchange rate shows a currency price, if it exchanged with another currency. Exchange rates of a currency fluctuate all the time. Rise and fall exchange rates of a currency in the money market shows the magnitude of volatility occurred in a country currency to other's. To estimate the volatility behavior of the data gave rise to volatility clustering or heteroscedasticity problems, can't be modeled using ARMA model and asymmetric effects that canât be modeled by ARCH or GARCH, can be modeled by Asymmetric Power ARCH (APARCH). In determining the estimated parameter values of APARCH model, used the maximum likelihood method, followed by using the iteration method is Berndt, Hall, Hall and Hausman (BHHH). The APARCH model used to the data return of exchange rate against dollar is APARCH(2,1) or in the form as follows : = 0,00000268 + 0,830902 + 0,130516 + 0,074784 + 0,15115
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