IDEAS home Printed from https://ideas.repec.org/p/sek/iefpro/4206516.html
   My bibliography  Save this paper

Effects of Gold Reserve Policy of Major Central Banks on Gold Prices Changes

Author

Listed:
  • Oguzhan Ozcelebi

    () (Istanbul University)

  • Metin Duyar

    () (Nevsehir Hac? Bektas Veli University)

Abstract

Central banks which are responsible for minting and monetary policy implementations are the institutions carry out sensitive policies for the healthy functioning of the economy. Policies implemented by central banks and its existing institutional structures cannot be dissociated from the political and social development of the country they live in, and the whole of economic policy. In recent years, with increasing pace of globalization, the mobility of international financial markets increased and this effect has extended the decisions of the central bank from national markets to international markets. In this study, we studied the possible impacts of changes in the share of gold in central banks? reserves on gold prices proving empirical evidence from the USA, the Euro area, China and Russia. According to Causality and Forecast Error Variance Decomposition analysis deriving from VEC model, reserve polices of central banks of these countries has considerable effects on variations in gold price in the long-term. Empirical findings reveal the importance of the size of balance sheet of central banks, while it is also stressed that growth potential of economies and investment opportunities are crucial issues in terms storing reserves in terms of gold.

Suggested Citation

  • Oguzhan Ozcelebi & Metin Duyar, 2016. "Effects of Gold Reserve Policy of Major Central Banks on Gold Prices Changes," Proceedings of Economics and Finance Conferences 4206516, International Institute of Social and Economic Sciences.
  • Handle: RePEc:sek:iefpro:4206516
    as

    Download full text from publisher

    File URL: https://iises.net/proceedings/6th-economics-finance-conference-oecd-headquarters-paris/table-of-content/detail?cid=42&iid=017&rid=6516
    File Function: First version, 2016
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Dynamics of Gold Prices; Central Banks; the USA; the Euro area; China and Russia;
    All these keywords.

    JEL classification:

    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • F30 - International Economics - - International Finance - - - General

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sek:iefpro:4206516. 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: (Klara Cermakova). General contact details of provider: https://iises.net/ .

    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.

    We have no references for this item. You can help adding them by using 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.