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Algorithm of Monetary Exchange in Manoilescu Generalised Scheme

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  • Dogaru, Vasile

Abstract

In a monetary competitive economy, the economic entities from the most countries are depending, in the international economic relations, on the existence of a foreign currency accepted in this operation and consequently on exchange rate between the currency from the specific state and this currency. The increase of the products’ exchange through the currency price allows us to study, from an analytical point of view, the most popular of the cases from the international trade: the export or import of merchandise which is not conditioned by the reverse operation of another product. The study will need to take into consideration some changes regarding the requirement of a simple exchange, with two products, which are necessary for the comprehension of this trade process. Firstly, in any analysis which regards an unilateral export operation of products, import or export not reciprocal connected, the partner’s internal prices aren’t observed as a rule such as in a simple exchange are. Now, the analysis necessarily needs to include the currency’s use matter, which is possible to be appreciated or depreciated in the “depositing” stage. Our main observation direction isn’t to at least collaterally follow this phenomenon, which is considered important regarding the imperceptible change of the currency’s instrument role.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 6917.

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Date of creation: May 2007
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Publication status: Published in ANNALS of the ORADEA UNIVERSITY, Fascicle of Management and Technological Engineering Volume VI (XVI).1(2007): pp. 2549-2557
Handle: RePEc:pra:mprapa:6917

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Related research

Keywords: Keywords: comparative advantage; currency; Manoilescu generalised scheme; resources saving. JEL codes: F17; E40; Q56; B41;

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  1. Dogaru, Vasile, 2005. "Comparative Advantage In The Generalized Scheme Of Manoilescu," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 2(3), pages 91-113.
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