Exchange Rate Dynamics and Fundamental Equilibrium Exchange Rates

The paper investigates if the most popular alternative to the purchasing parity power approach (PPP) to estimate equilibrium exchange rates, the fundamental equilibrium exchange rate (FEER) influences exchange rate dynamics in the long run. For a large panel of industrialized and emerging countries and on the period 1982-2007, we detect the presence of unit roots in the series of real effective exchange rates and in the series of FEERs. We find and estimate a cointegration relationship between real effective exchange rates and FEERs. The results show that the FEER has a positive and significant influence on exchange rate dynamics in the long run.Fundamental equilibrium exchange rates; Panel unit root tests; Global imbalances; Fully modified ordinary least square; Dynamic ordinary least square; Pooled Mean Group

Exchange Rate Dynamics and Fundamental Equilibrium Exchange Rates

The paper investigates if the most popular alternative to the purchasing parity power approach (PPP) to estimate equilibrium exchange rates, the fundamental equilibrium exchange rate (FEER) influences exchange rate dynamics in the long run. For a large panel of industrialized and emerging countries and on the period 1982-2007, we detect the presence of unit roots in the series of real effective exchange rates and in the series of FEERs. We find and estimate a cointegration relationship between real effective exchange rates and FEERs. The results show that the FEER has a positive and significant influence on exchange rate dynamics in the long run.Fundamental equilibrium exchange rates, Panel unit root tests, Global imbalances, Fully modified ordinary least square, Dynamic ordinary least square

Global imbalances and capital account openness: an empirical analysis

We investigate if capital account openness has played a major role in the evolution of global imbalances on the period 1980-2003. We estimate, with panel regression techniques, the impact of capital account openness on medium run current account imbalances for industrialized and emerging countries by using a de jure measure of capital account openness (the Chinn-Ito index of capital account openness, 2002, 2006) and a de facto measure of capital account openness (the gross foreign assets measured as the sum of foreign assets and foreign liabilities). By increasing the opportunities of overseas investments, the relative capital account openness has had positive impact on medium run current account balances of industrialized countries (because of downward pressures on domestic investment rates). Conversely, the relative capital account openness has had negative impact on medium run current account balances of emerging countries (because of upward pressures on domestic investment rates). The evolutions of domestic and foreign capital account openness have allowed increasing medium run current account balances in absolute value during this period.Global Imbalances; Capital Account Openness; Chinn-Ito index

The modal logic of Reverse Mathematics

The implication relationship between subsystems in Reverse Mathematics has an underlying logic, which can be used to deduce certain new Reverse Mathematics results from existing ones in a routine way. We use techniques of modal logic to formalize the logic of Reverse Mathematics into a system that we name s-logic. We argue that s-logic captures precisely the "logical" content of the implication and nonimplication relations between subsystems in Reverse Mathematics. We present a sound, complete, decidable, and compact tableau-style deductive system for s-logic, and explore in detail two fragments that are particularly relevant to Reverse Mathematics practice and automated theorem proving of Reverse Mathematics results

Volatility Transmission Between Dow Jones Stock Index And Emerging Islamic Stock Index: Case Of Subprime Financial Crises

In the course of the recent global crisis, the stock shocks are distributed and transmitted from their homes in the developed stock market to emerging stock markets. By supporting the development of emerging stock markets, this study aims to see the transmission of volatility between the Dow Jones stock index and the Dow Jones emerging Islamic stock indiex. In this study we have divided the period into three, periods, before, during and after this crisis to demonstrate the resilience of the Islamic market index in response to the global financial crisis. Another aim of this study is to provide a new guide line for investors in emerging stock market before making investment decisions. The data are daily, going from 02/01/2005 until 31/12/2012. To measure the transmission we used bivariate BEKK-GARCH and DCC-GARCH model. The result shows that there is a transmission mainly during the crisis period which means that the crisis affects all the financial assets whether Islamic or not. The same result also shows the preference to invest in both Islamic and classical stock indexes since they are less risky

Extensions of (metric) Hom-Jacobi-Jordan algebras

The main purpose of this paper is to provide a second cohomology group of a (metric) Hom-Jacobi algebra with coefficients in a given representation. Moreover, we show that second cohomology group classifies abelian extensions of a (metric) Hom-Jacobi algebra algebra by a representation

On the Logic of Reverse Mathematics

The goal of reverse mathematics is to study the implication and non-implication relationships between theorems. These relationships have their own internal logic, allowing some implications and non-implications to be derived directly from others. The goal of this thesis is to characterize this logic in order to capture the relationships between specific mathematical works. The results of our study are a finite set of rules for this logic and the corresponding soundness and completeness theorems. We also compare our logic with modal logic and strict implication logic. In addition, we explain two applications of S-logic in topology and second order arithmetic