Sustainable development and currency exchange rate behavior

Mohamed Ariff, Alireza Zarei

Research output: Contribution to journalArticle

1 Citation (Scopus)
9 Downloads (Pure)

Abstract

We discuss currency volatility as a measure of currency instability using 15 currencies from developed and emerging economies. The IMF and others have recorded how countries manage their exchange rates to promote sustainable economic growth by designing exchange rate regimes as a pillar within economic policy. The findings herein show how to track currency instability using a given currency's volatility against the volatility of a benchmark currency of importance to the given currency. This is termed relative volatility. The study proceeds to test whether the parity factors and country risk factor are significantly correlated with exchange rate relative volatility.

Original languageEnglish
Pages (from-to)148-173
Number of pages26
JournalAsian Economic Papers
Volume17
Issue number3
Early online date29 Oct 2018
DOIs
Publication statusPublished - 2018
Externally publishedYes

Bibliographical note

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Keywords

  • Currency Stability
  • Relative volatility
  • Stability
  • Relative risk
  • Monetary factors
  • Long-run relationship
  • Mean Reversion

ASJC Scopus subject areas

  • Finance
  • Economics and Econometrics
  • Political Science and International Relations

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