An f-percent filter rule in a foreign exchange market calls for buying a foreign currency when its price has risen by f percent above a trough and holding until its price has fallen f percent from a peak. If the foreign exchange rate following a random walk, this is an unprofitable strategy....

Monetary policy's weight in macroeconomic policy has increased over the past years, especially with the liberalization of financial markets and development of new financial instruments. With this new global economy, the gap between countries has become wider, and the less developed are...

This article considers a transition toward European monetary union that combines increased substitution of currencies and greater monetary, financial, and fiscal policy coordination. It explores how such a transition would affect national inflation and interest rates and required reserve ratios...

This paper investigates the role of currency denomination in the the intertemporal risk-return relation among G7 countries. Similar to the findings of previous studies, our estimation also shows that the financial markets of the G7 countries are integrated. We obtain significant pricing...

The main purpose of this research is to analyze the affecting factors of the demand of private bonds in Indonesia. And to calculate the contribution of each variable to the demand of private bonds in Indonesia. The variables that considered affect the demand of private bonds are Gross Domestic...

Economic of a nation depends on another country’s economic. This one is proved with the globalitation causes international trade like export-import. North Sumatra has taken participation in the activity of international trade, it’s to improve economic growth. One of the part that’s...

Commodity price uncertainty imposes large costs on society. On the macro level, it results in sudden and unexpected shifts in current account imbalances and real GDP volatility, while on the micro level, it leads to allocation inefficiencies. Accurate price forecasts have the potential to remove...

This research investigates the information content of the translation information resulting from exchange rate fluctuations. Two hypotheses are examined. The dollar movement hypotheses investigate whether there is a positive relationship between security valuation and the translation information...

The forthcoming EU enlargement raises a series of questions related to the new entrants’ entry to Exchange Rate Mechanism II and their subsequent adoption of the single currency. In this paper, the issue of how to determine the central parity for the acceding countries with which to enter...

In this paper, we examine the determinants of inflation differentials in a panel of the newEuropean Union member states vis-‡-vis the euro area in 1997-2007. Our main results are as follows. Exchange rate appreciation and higher price level in the new EU members is associated with narrower...