15 research outputs found
Covered Interest Rate Parity: The Case of the Czech Republic
This paper tries to find out, whether the Covered Interest Rate Parity (CIRP) theory was valid for exchange rate CZK/EUR during the period ranging from May 2001 to November 2007. As a main tool, a common OLS regression was chosen. It was augmented by MA(1) process of residuals and by ARCH (6) model of residuals’ variance. The results show, that the CIRP theory was not valid during selected period. However, it seems apparent, that the main factors for 3-month forward exchange rate CZK/EUR determination were an interest rate differential and a nominal spot exchange rate. This is fully consistent with the CIRP theory.Covered interest rate parity, exchange rate, interest rate, foreign exchange markets
Inflation in the US Economy: It Is a Problem or Not?
This paper provides brief analysis of selected macroeconomical indicators of US economy and tries to sketch out possible future development of these variables. The main conclusion is that United States may be really threatened by possible inflation pressures in the future, as well as by possible pressures on its nominal exchange rate depreciation.Inflation; financial crisis; monetary aggregates; product
The role of religion and political regime for human capital and economic development
In this paper, we focus on the research of the impact of religion and political regime on human capital and economic development. There is a lot of incentive literature concerning the impact of political regime and religion on the economic development. However, we use different approach to show the mutual dependence of variables and offer another aspect of economic development relating to religion which is secularization and the principle of equal rights. We use three equation model to verify two hypotheses in our paper. The first, that differences in GDP per capita among countries determined by technological progress are influenced by religion and political regime. The second, that there is the interplay between GDP and educational level and education and political regime.economic development, political regime, religion, human capital
The Analysis of Volatility of Selected Countries' Exchange Rates
This paper is focused on the historical development of selected exchange rates' volatility, that is: AUD, CAD, DEM, DKK, EUR, FRF, GBP, JPY, SEK and CHF against USD. The paper aims to show that relatively large increment of exchange markets' volatility is nothing special in the historical context considering the lenght and the extent.exchange, rate, volatility, ARCH, GARCH
Bretton-Woods Monetary System: Was It Fixed or De-facto Floating?
International monetary system made by agreement in Bretton – Woods, is widely known to be the system of fixed exchange rates with allowed +/- 1% band of oscillation. As such, it is viewed as the period of exchange rates stability. However, our analysis of Reinhart – Rogoff’s (2004) database of exchange rates regimes shows, that most countries chose far more flexible exchange rates’ regimes. By the same token, the de – facto exchange rates varied very often and substantially from the officially declared ones.International monetary system, Bretton – Woods, foreign exchange rates, peg, floating
Inflation in the US Economy: It Is a Problem or Not?
This paper provides brief analysis of selected macroeconomical indicators of US economy and tries to sketch out possible future development of these variables. The main conclusion is that United States may be really threatened by possible inflation pressures in the future, as well as by possible pressures on its nominal exchange rate depreciation
Bretton-WoodskĂ˝ mÄ›novĂ˝ systĂ©m: SystĂ©m fixnĂch nebo de-facto plovoucĂch kurzĹŻ?
International monetary system made by agreement in Bretton – Woods, is widely known to be the system of fixed exchange rates with allowed +/- 1% band of oscillation. As such, it is viewed as the period of exchange rates stability. However, our analysis of Reinhart – Rogoff’s (2004) database of exchange rates regimes shows, that most countries chose far more flexible exchange rates’ regimes. By the same token, the de – facto exchange rates varied very often and substantially from the officially declared ones
Inflation in the US Economy: It Is a Problem or Not?
This paper provides brief analysis of selected macroeconomical indicators of US economy and tries to sketch out possible future development of these variables. The main conclusion is that United States may be really threatened by possible inflation pressures in the future, as well as by possible pressures on its nominal exchange rate depreciation
Loan Dollarization in V4 Countries
This paper deals with loans dollarization of V4 countries residents, its development and sectoral composition. By conducting simple OLS regression for each V4 country tries to find out some factors that may have been contributing to dollarized loans development
Covered Interest Rate Parity: The Case of the Czech Republic
This paper tries to find out, whether the Covered Interest Rate Parity (CIRP) theory was valid for exchange rate CZK/EUR during the period ranging from May 2001 to November 2007. As a main tool, a common OLS regression was chosen. It was augmented by MA(1) process of residuals and by ARCH (6) model of residuals’ variance. The results show, that the CIRP theory was not valid during selected period. However, it seems apparent, that the main factors for 3-month forward exchange rate CZK/EUR determination were an interest rate differential and a nominal spot exchange rate. This is fully consistent with the CIRP theory