The Price of Gold and the Exchange Rates: Once Again

This paper examines the theoretical and empirical relationships between the major exchange rates and the price of gold using forecast error data. Among other things, it is found that, since the dissolution of the Bretton Woods international monetary system, floating exchange rates among the major currencies have been a major source of price instability in the world gold market and, as the world gold market now seems to be dominated by the U.S. dollar bloc, appreciations or depreciations of that dollar would have strong effects on the price of gold in other currencies. The results of this study are rather different from those obtained in an earlier study of the same subject.

Import Protection, Capital Inflows, and Real Exchange Rate Dynamics

This paper focuses on the effect of import protection on the response of the real exchange rate to capital flows. The central hypothesis is that barriers to imports blunt the expenditure and production shifting effects of changes in relative prices, and hence the ability of the real exchange rate to equilibrate the economy in response to international capital flows. Employing a cross-section approach, the study focuses on three broadly similar countries but with very different levels of protection: Argentina, Australia, and Canada. The empirical results are consistent with the central hypothesis.import protection; real exchange rate

Dinero, Gasto y la Balanza de Pagos en una Economía Abierta y Pequeña

The paper analyzes two models, a real and a monetary model, to point out the differences between real and monetary approaches to the balance of payments. The real model applies purchasing power parity to examine alternatively the effects on the current ac

La Protección y el Volumen de Comercio: La Evidencia

This chapter develops a macro model of international trade in which non-traded goods play a central role. The volume of trade (imports or exports) is taken to depend upon the two relative prices in the model, income, and expenditure. The properties of the