Search results for "currency"
showing 10 items of 165 documents
The shadow economy in three Mediterranean countries: France, Spain and Greece. A MIMIC approach
2007
This paper offers estimations of the evolution of the shadow economy in three Mediterranean countries, namely France, Spain and Greece. A multiple indicators and multiple causes model based on the latent variable structural theory has been applied. As established by Giles (Working paper on monitoring the health of the tax system, 1995), filtered data to solve the non-stationary problems are used. The model includes the tax burden (both as a whole and disaggregated into direct taxes, indirect taxes and social security contributions), a proxy of regulation burden, theu nemployment rate and self-employment as causes of the shadow economy and the GDP growth rate, the labour force participation …
Evaluating currency crises: the case of the European monetary system
2007
In this paper we examine the nature of currency crises. We ascertain whether the currency crises of the European Monetary System (EMS) were based either on fundamentals, or on self-fulfilling market expectations driven by extrinsic uncertainty. In particular, we extend previous work of Jeanne and Masson (J Int Econ 50:327–350, 2000) regarding the evaluation of currency crisis. We contribute to the existing literature proposing the use of Markov regime-switching with time-varying transition probability model. Our empirical results suggest that the currency crises of the EMS were not due only to market expectations driven by external uncertainty, or ‘sunspots’, but also to fundamental variabl…
Pricing of Asian exchange rate options under stochastic interest rates as a sum of options
2002
The aim of the paper is to develop pricing formulas for long term European type Asian options written on the exchange rate in a two currency economy. The exchange rate as well as the foreign and domestic zero coupon bond prices are assumed to follow geometric Brownian motions. The emphasis is devoted to the discretely sampled Asian option. It is shown how the value of this option can be approximated as the sum of Black-Scholes options. The formula is obtained under the extension of results developed by Rogers and Shi (1995) and Jamshidian (1991). In addition bounds for the pricing error are determined. Comparing with Monte Carlo simulation the pricing is found to be very precise.
The introduction of the Euro and its effects on portfolio decisions
2010
Abstract Examining investment behavior related to the Euro introduction, we address the relevance of different investment determinants. With the advent of the currency union two potential sources of portfolio reallocation can be distinguished: First, the diminishment of exchange rate risk and transaction costs within the EMU. Second, the increase of correlation of EMU returns so that diversification benefits decreased. We test for structural breaks in the holdings of German investors and estimate a market model to account for the two effects. A significant decrease in national and an increase in EMU and rest-of-the-world investments can be observed. Comparing the observed holdings with benc…
Regional currencies and regional monetary zones in Latin America: what prospects?
2009
Reducing transaction costs and the need for international reserves is a primary objective to the establishment of regional payment agreements. Another objective, especially in the case of Latin America where the Ecuadorian promoters of the Bank of the South (Banco del Sur) and the New Regional Financial Architecture are planning the implementation of a regional clearing system, is to reduce member countries' dependence on the U. S. dollar as an international standard and reserve currency. To help improve the design of such agreements, this paper refers to the plan Keynes designed for the Bretton Woods conference. First, it observes that cases were made against this plan from which useful le…
The Effect of EMU on Tourism
2007
Abstract This paper estimates the effect of the euro on intra-EMU tourist flows by using a panel dataset of 20 OECD countries over the period 1995–2002. The results reveal that the euro has increased tourism, with an effect of around 6.5%. This is a noticeable impact given the early stage of the EMU analyzed. The robustness checks show that the evidence of a positive impact is quite widespread across EMU destinationcountries. 1. Introduction The aim of this paper is to analyze the impact of the euro on tourism among the 12members of the Economic and Monetary Union (EMU) in Europe. One of theexpected effects of the creation of the single European currency was the increase in trade of goods an…
Statistical Analysis of the (In)efficiency of Bitcoin : A comparison of the weak form efficient market hypothesis in the US and Venezuela
2019
Master's thesis Business Administration BE501 - University of Agder 2019 Bitcoin is a phenomenon that has received a lot of attentionduringthe last years. Although the literature on the subject has expanded, there is still need for more research. This paper replicates the work of Urquhart (2016) and examines whether there isevidence ofweak form efficiency in the Bitcoin market. He found that the Bitcoin market in the US showed signs of moving towards weak form efficiency. We contribute to the existing literature by adding recentdata and comparing two different markets;the USand Venezuela. To obtain robustness of the results, the analysis is conducted by performing six different statistical …
Bitcoin kā norēķinu sistēma Telia Latvija uzņēmumā
2017
Mūsdienu globalizācijas apstākļos arvien vairāk naudas tiek pārskaitīta starptautiskos pārskaitījumos. Šādu pārskaitījumu veikšana izmaksā aptuveni 5% no kopējās pārskaitījuma summas, kā arī tie parasti aizņem vismaz pāris dienas, kas apgrūtina darījumu veikšanu starptautiskā līmenī. Bitcoin ir decentralizēta kriptovalūta, ar kuras palīdzību ir iespējams veikt pārskaitījumus bez distances ierobežojumiem caur internetu. Bitcoin pārskaitījumi parasti izmaksā zem 1% no darījuma summas, un pārskaitījums parasti aizņem 5 – 30 minūtes. Šajā darbā tiek apskatītas iespējas izmantot bitcoin pārskaitījumu sistēmu telekomunikāciju uzņēmuma SIA Telia Latvija interneta pakalpojumu norēķinam. Tiek analiz…
Explaining attitudes towards the euro: Design of a cross-national study
1998
AbstractThe aim of this paper is to provide essential background material relating to the accom-panying papers in this special issue. It presents a brief description of the ‘Psychology of theEuropean Monetary Union’ project. This involved a questionnaire study of attitudes towardsthe euro, which was fielded in each of the 15 member states of the European Union in thesummer of 1997. We describe the development of the common survey instrument, and outlinethe rationale and methods pursued in sampling particular conceptual domains. The paper alsodetails the sampling procedures used in each country, together with the response rates andsample sizes attained. Finally, it o•ers a brief cross-nationa…
Debating Sound Money in Early Modern Europe: From Dualist to Metallic Monetary Systems
2019
International audience; In this paper, we present the monetary debates in Europe from the XVIth to the XVIIIth centuries from the viewpoint of the problem of good and sound money. The framework of the paper is built on a typology of monetary systems, by which a dualist system is distinguished from a metallic one. Under the dualist system, the value in units of account of the specie in circulation was defined by monetary proclamations (Einaudi locates this era from Charlemagne to the French Revolution). Metallist proponents aimed at preventing any kind of manipulations with a radical transformation of the system of payment, which gave birth to a metallic monetary system from the very end of …