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 U.S. 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 InfoPaper provided by The University of Western Australia, Department of Economics in its series Economics Discussion / Working Papers with number 07-20.
Length: 15 pages
Date of creation: 2007
Date of revision:
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Other versions of this item:
- Sjaastad, Larry A., 2008. "The price of gold and the exchange rates: Once again," Resources Policy, Elsevier, vol. 33(2), pages 118-124, June.
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Dornbusch, Rudiger, 1987.
"Exchange Rate Economics: 1986,"
Royal Economic Society, vol. 97(385), pages 1-18, March.
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