This file is part of IDEAS, which uses RePEc data


[ Papers | Articles | Software | Books | Chapters | Authors | Institutions | JEL Classification | NEP reports | Search | New papers by email | Author registration | Rankings | Volunteers | FAQ | Blog | Help! ]

War and exchange rate valuation

Author info | Abstract | Publisher info | Download info | Related research | Statistics
Author Info
Christopher E.S. Warburton () (Department of Economics, John Jay College of Criminal Justice, New York, U.S.A)
Abstract

This article investigates the extent to which the dominance of the United States (U.S.) dollar as an international currency has been contingent on American diplomacy rather than the prosecution of expensive wars. Four wars are examined, the Korean War (1950-1953), the Vietnam War (1964-1975), the Persian Gulf War (1990-1991), and the Iraq War (2003-present). The historical performance of the dollar is examined in times of war and peace, and the Box-Jenkins forecasting algorithm is employed to make a short-term projection of the dollar coinciding with the Iraq war. The price of gold is used as a measure of the value of the U.S. dollar and investor confidence in the dollar during times of war and peace. The empirical evidence shows a short-term depreciation of the U.S. dollar coinciding with the Iraq War, which is not atypical of the value of the U.S. dollar in a time of war. Problems with the value of the U.S. dollar in times of war lead to the exploration of alternative forms of money, which if very successful, can erode the continued dominance of the U.S. dollar as an international currency.

Download Info
To download:

If you experience problems downloading a file, check if you have the proper application to view it first. Information about this may be contained in the File-Format links below. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www.epsjournal.org.uk/Vol4/No1/issue.php
File Format: application/pdf
File Function:
Download Restriction: Access to full text for Volume 2 onwards is restricted to subscribers

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Publisher Info
Article provided by Economists for Peace and Security (UK) in its journal Economics of Peace and Security Journal.

Volume (Year): 4 (2009)
Issue (Month): 1 (January)
Pages: 62-69
Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Handle: RePEc:uwe:journl:v:4:y:2009:i:1:p:62-69

Contact details of provider:
Web page: http://www.epsjournal.org.uk
More information through EDIRC

For technical questions regarding this item, or to correct its listing, contact: (J Paul Dunne).

Related research
Keywords: currency valuation; forecasting; optimum currency areas; war.;

Find related papers by JEL classification:
F15 - International Economics - - Trade - - - Economic Integration
F51 - International Economics - - International Relations and International Political Economy - - - International Conflicts; Negotiations; Sanctions
H56 - Public Economics - - National Government Expenditures and Related Policies - - - National Security and War

Statistics
Access and download statistics

Did you know? There are over 21000 authors registered on RePEc Author Service.

This page was last updated on 2009-12-15.

This information is provided to you by IDEAS at the Department of Economics, College of Liberal Arts and Sciences, University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics.