The price of gold and the exchange rates: Once again
AbstractThis paper examines the theoretical and empirical relationships between the major exchange rates and the price of gold using forecast error data. Among other things, it is found that, since the dissolution of the Bretton Woods international monetary system, floating exchange rates among the major currencies have been a major source of price instability in the world gold market and, as the world gold market now seems to be dominated by the US dollar bloc, appreciations or depreciations of that dollar would have strong effects on the price of gold in other currencies. The results of this study are rather different from those obtained in an earlier study of the same subject.
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Bibliographic InfoArticle provided by Elsevier in its journal Resources Policy.
Volume (Year): 33 (2008)
Issue (Month): 2 (June)
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Web page: http://www.elsevier.com/locate/inca/30467
Other versions of this item:
- Larry A. Sjaastad, 2007. "The Price of Gold and the Exchange Rates: Once Again," Economics Discussion / Working Papers 07-20, The University of Western Australia, Department of Economics.
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- Dornbusch, Rudiger, 1987.
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- Le, Thai-Ha & Chang, Youngho, 2011. "Dynamic relationships between the price of oil, gold and financial variables in Japan: a bounds testing approach," MPRA Paper 33030, University Library of Munich, Germany.
- Baffes, John & Dennis, Allen, 2013. "Long-term drivers of food prices," Policy Research Working Paper Series 6455, The World Bank.
- Thai-Ha LE & Youngho CHANG, 2011. "Dynamics Between Strategic Commodities and Financial Variables," Economic Growth centre Working Paper Series 1104, Nanyang Technolgical University, School of Humanities and Social Sciences, Economic Growth centre.
- Wang, Kuan-Min & Lee, Yuan-Ming, 2011. "The yen for gold," Resources Policy, Elsevier, vol. 36(1), pages 39-48, March.
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