Download or read book A Classroom Experiment on Exchange Rate Determination with Purchasing Power Parity written by David T. Mitchell and published by . This book was released on 2015 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: We develop a classroom experiment on exchange rate determination appropriate for undergraduate courses in macroeconomics and international economics. Students represent citizens from different countries and need to obtain currency to purchase goods. By participating in a sealed bid auction to buy currency, students gain a better understanding of currency markets and the determination of exchange rates. The implicit framework for exchange rate determination is one in which prices are perfectly flexible (in the long run) so that purchasing power parity (PPP) prevails. Additional treatments allow students to examine the impact of transport costs, nontradable goods and tariffs on the exchange rate and to explore possible deviations from PPP.
Download or read book The Principles of Exchange Rate Determination in an International Finance Experiment written by Charles N. Noussair and published by . This book was released on 1998 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper reports the first experiments designed to explore the behavior of economies with prominent features of international finance. Two "countries," each with its own currency, were created. International trade could take place only through the operation of markets for currency. The law of one price and the flow of funds theory of exchange rate determination were used to produce general equilibrium models that captured much of the behavior of the economies. Prices of goods, as well as the exchange rate, evolve over time toward the predictions of the models. However, both the law of one price and purchasing power parity can be rejected for reasons that do not appear in the literature. Patterns of international trade were as predicted by the law of comparative advantage.
Download or read book The Purchasing Power Parity View of Exchange Rate Determination written by Soner Masa and published by . This book was released on 1988 with total page 240 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Deviations of Exchange Rates from Purchasing Power Parity written by Mr.Tamim Bayoumi and published by International Monetary Fund. This book was released on 1998-05-01 with total page 18 pages. Available in PDF, EPUB and Kindle. Book excerpt: We examine the mean-reverting properties of real exchange rates, by comparing the unit root properties of a group of international real exchange rates with two groups of intra-national real exchange rates. Strikingly, we find that while the international real rates taken as a group appear mean-reverting, the intra-national rates are not. This is consistent with the view that while monetary shocks may be mean-reverting over the medium term, underlying real factors do generate long-term trends in real exchange rates.
Download or read book The Efficient Markets Hypothesis the Purchasing Power Parity Theory of Exchange Rate Determination and the Black Market for Foreign Exchange written by Abbas Noorbakhsh and published by . This book was released on 1989 with total page 410 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Models of Exchange Rate Determination and an Emprical Test of Purchasing Power Parity Hypothesis for Turkey written by Ali Erdinç Cumbul and published by . This book was released on 1996 with total page 62 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Palgrave Handbook of Learning and Teaching International Business and Management written by Maria Alejandra Gonzalez-Perez and published by Springer Nature. This book was released on 2019-09-05 with total page 971 pages. Available in PDF, EPUB and Kindle. Book excerpt: This handbook, which serves as a follow-up text to The Palgrave Handbook of Experiential Learning In International Business, reviews theoretical and empirical approaches of experiential learning pedagogy, and its role in increasing the effectiveness in teaching and learning of international business, and also, in the incorporation of international business-related concepts and competences in business and non-business programs. This edition offers a broader and updated perspective on experiential learning pedagogy for international business and management, and beyond. The first part provides an updated overview of the theories of experiential learning and effectiveness of teaching and learning in international business through the use of experiential learning projects. Part two provides a collection of specific applications of experiential learning in International Business and related fields. This handbook is a one-stop source for international managers, business educators, and trainers seeking to either select and use an existing experiential learning project or develop new projects and exercises of this kind.
Download or read book An International Comparison of Prices and Exchange Rates written by Meher Manzur and published by . This book was released on 1988 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Purchasing Power Parity and Real Exchange Rates written by Mark P. Taylor and published by Routledge. This book was released on 2013-09-13 with total page 227 pages. Available in PDF, EPUB and Kindle. Book excerpt: The term Purchasing Power Parity may date from the early twentieth century, when it was coined by the Swedish economist Gustav Cassel, but the underlying concept had been enjoying varying degrees of success since its development in sixteenth century Spain. Even towards the end of the twentieth century, and especially since the breakdown of the Bretton Woods system of fixed exchange rates, PPP and the stability of real exchange rates continued to be the subject of academic debate. This volume brings together essays covering aspects of current thinking on Purchasing Power Parity, from the various ways in which to test for its existence, to its appearance in different economies around the world, to examinations of the explanations given when PPP does not appear to hold This book was published as a special issue of Applied Financial Economics. The academic editor of this journal is Mark P. Taylor.
Download or read book The Purchasing Power of Money written by Irving Fisher and published by . This book was released on 1911 with total page 558 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Prominent Numbers Indices and Ratios in Exchange Rate Determination and Financial Crashes written by and published by . This book was released on 2009 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: The prior paper in this sequel, Pope (2009) introduced the concept of a nominalist heuristic, defined as a focus on prominent numbers, indices or ratios. In this paper the concept is used to show three things in how scientists and practitioners analyse and evaluate to decide (conclude). First, in constructing theories such as purchasing power and interest parity to predict exchange rates and to advocate floating exchange rates, economists unwittingly employ nominalist heuristics. Second, nominalist heuristics have influenced actual exchange rates through the centuries, and this finding is replicated in the laboratory. Third, nominalist heuristics are incompatible with expected utility theory which excludes the evaluation stage, and are also incompatible with prospect theory which assumes that, while the evaluation stage can involve systematic mistakes, the overall decision situation is ultra simple. It is so simple that: a) economists and psychologists can mechanically model and identify what is a mistake, and b) decision makers can maximise. However, contrary to prospect theory, in the typical complex situation, neither a) nor b) holds. Assuming that a) and b) hold has resulted in the 1988 crisis from applying the Black Scholes formulae to forward exchange rates and contributed to sequel financial crises including that of 2007-2009. What is required is a fundamentally different class of models that allow for the progressive anticipated changes in knowledge ahead faced under risk and uncertainty, namely models under the umbrella of SKAT, the Stages of Knowledge Ahead Theory. The paper's findings support a single world currency rather than variable unpredictable exchange rates subjected to the vagaries of how prominent numbers, ratios and indices influence events via the models of scientists and practitioners. -- nominalism ; money illusion ; heuristic ; unpredictability ; experiment ; SKAT the Stages of Knowledge Ahead Theory ; prominent numbers ; prominent indices ; prominent ratios ; transparent policy ; nominal equality ; historical benchmarks ; complexity ; decision costs ; evaluation ; maximisation ; Black Scholes ; Lehmann Brothers ; sub-prime crisis ; central bank swaps
Download or read book Exchange Rate Determination and the Demand for Money written by Craig Stephan Hakkio and published by . This book was released on 1981 with total page 24 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper examines the conventional monetary equation of exchange rate determination. Under certain exogeneity conditions, one can write the price level, at home and abroad, as the ratio of the nominal money supply to the demand for real money balances. Then, since the exchange rate is the domestic price of foreign exchange, one can equate the exchange rate to the ratio of domestic to foreign prices. This then allows one to write, and estimate, the exchange rate as a function of the money supply differential, income differential and interest rate differential. If the domestic and foreign money demand errors are autocorrelated, and if deviations from purchasing power parity are autocorrelated, tests based on the above model may be invalid. Only if all autoregressive parameters are equal will test results be valid. A full information maximum likelihood procedure is used to estimate and test the assumptions necessary for the conventional procedure to be correct. Finally, two alternative models of exchange rate determination are considered to illustrate the importance of introducing the error terms at the beginning of the analysis
Download or read book Nonlinear Adjustment Purchasing Power Parity and the Role of Nominal Exchange Rates and Prices written by Joscha Beckmann and published by . This book was released on 2011 with total page 27 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Rise and Fall of Sterling written by Hali J. Edison and published by . This book was released on 1983 with total page 48 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Principles of Exchange Rate Determination in an International Finance Experiment written by Ch. N. Noussair and published by . This book was released on 1993 with total page 33 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Concepts to Calculate Equilibrium Exchange Rates written by Ronald MacDonald and published by . This book was released on 2016 with total page 75 pages. Available in PDF, EPUB and Kindle. Book excerpt: In this paper we present a critical overview of differnt methods of constructing an equilibrium exchange rate. The recent literature on purchasing power parity (PPP) indicates that on its own PPP is not a good vehicle for defining an equilibrium exchange rate. Rather, we argue that the latter can only be recover from a model in which the real determinants of exchange rates are explicitly modelled. The advantages and disadvantages of various such models are discussed. In particular, the internal-external balance approach to defining an equilibrium real exchange rate is disccused, and this method is compared to the so-called behavioural equilibrium approach. Finally, an approach which uses purely time series methods to construct an equilibrium exchange rate is also discussed.
Download or read book Robustness of Equilibrium Exchange Rate Calculations to Alternative Assumptions and Methodologies written by Tamim Bayoumi and published by . This book was released on 1994 with total page 58 pages. Available in PDF, EPUB and Kindle. Book excerpt:
