Previous literature suggests that economic exposure shouid be managed within the firm’s overall strategy regarding the choice of production iocation. In this paper, it is shown that this strategy is equivalent to exposed firms incorporating real options in their cost function, enabling these...

Hurst (1951) developed Rescaled range analysis to determine long-memory effects and fractal Brownian motion in time series. Rescaled range (R/S) analysis measures how the distance covered by a particle increases as we look at longer and longer time scales. For Brownian motion the distance...

Purpose – The paper aims at developing a theoretical model for de facto dollarized small open economies focusing on currency substitution and nominal wages indexation to the exchange rate. Design/methodology/approach – The analysis is performed in a general equilibrium “New Open Economy...

Purpose – This paper aims to investigate the presence of currency substitution in eight African countries. Design/methodology/approach – This study investigates the presence of currency substitution in eight African countries – Egypt, Morocco, Nigeria, Ghana, Kenya, South Africa, Tunisia...

Purpose – To investigate the extent to which finance managers in non‐financial firms speculate in the currency markets and particularly to investigate the effect of individual‐owners on such speculation. Design/methodology/approach – This paper uses survey data in order to analyse the...

Purpose – Recent research indicates that the random walk hypothesis (RWH) approximately describes the behavior of major dollar exchange rates during the post‐1973 float. The present analysis seeks to examine the profitability of currency futures trading rules that assume that spot exchange...

Purpose – The purpose of this paper is to examine proposals for a Tobin tax to curb currency speculation in global markets. Design/methodology/approach – Financial markets are viewed from the perspective of Michel Serres. Findings – Managing volatility is really about managing...

Considers the aims of the “founding fathers” of the European Community in creating a free trade area based on the notion that “If the goods cross the frontiers, the armies won’t”. Looks at the likely impact of monetary union and argues that a single currency, with the consequent...

Highlights the key features and differences between cash and electronic money and the benefits the former cannot deliver. However, consumer confidence is seen as the vital factor in acceptance of the latter. Summarises the four main areas identified by the European Commission in 1997 where...