Advanced Search
MyIDEAS: Login

Application of Four-Rate Formula and Exchange Rate Formula to demonstration of single currency with different value and interest rate

Contents:

Author Info

  • Xiaozhong Zhai

Abstract

Putting the theory of price system on the relationship among price, wage, labor time, interest rate and GNP (or GDP), four main variables in economics, Four-Rate Formula and Exchange Rate Formula are created (Xiaozhong Zhai 2003). Two formulas applying to analyses of economy and calculation can show some valuable data to macroeconomics, economist and policymaker. They can produce a proof to demonstrate that single currency, for example, single European currency with different value and interest rate in different conditions and regions, can not certainly benefit price stability, sound public finances, low interest rates, incentives for growth, investment and employment. Two formulas are very simple, practical and easy to deal with the complex phenomenon in economy. Exchange Rate Formula has an immediate signification in the international trade economy.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. 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://128.118.178.162/eps/mac/papers/0410/0410007.pdf
Download Restriction: no

Bibliographic Info

Paper provided by EconWPA in its series Macroeconomics with number 0410007.

as in new window
Length: 7 pages
Date of creation: 23 Oct 2004
Date of revision:
Handle: RePEc:wpa:wuwpma:0410007

Note: Type of Document - pdf; pages: 7. Four-Rates Formula and Exchange Rate Formula are very good for practice, because they can give a conclusive data evidence.Even though the Four-Rates Formula is not 100% accurate (because the change in GNP and interest rate do not in 100% represent production and exchange efficiency respectively), its advantages well outweigh its shortcoming. Considering the complexity of a country¡¯s economy, Four-Rate Formula that is such a small that can let us understand the main issue in the macroeconomics is inspiring and worth reading. Politic leader and economic plan-maker can very easily use this formula in guiding their economic policy.
Contact details of provider:
Web page: http://128.118.178.162

Related research

Keywords: wage; price; GNP; interest rate; Four-Rate Formula and Exchange Rate Formula;

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:wpa:wuwpma:0410007. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (EconWPA).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.