Hasan, Mohammad S (2006) The prices of silver and exchange rates in a metallic monetary system - the cases of India and Iran. Empirical Economics, 31 (1). pp. 195-206. ISSN 0377-7332 .
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Using the notion of co-integration theory and a vector error correction modelling approach, this paper examines in retrospect the long-run relationship between the exchange rate of silver-based currencies and the intrinsic value of silver in India and Iran in a bivariate model. The results based on unit root and co-integration tests indicate a reliable long-run relationship between the price of silver and the exchange rate of silver-based currencies. Our findings also suggest a bidirectional relationship between the price of silver and exchange rate of pound per rupee in the case of India and a feedback relationship between the intrinsic value of qiran and the exchange rate of pound per qiran in the case of Iran.
|Uncontrolled keywords:||silver monetary standard; bimetallic exchange rates; arbitrage; market efficiency; cointegration|
|Subjects:||H Social Sciences|
|Divisions:||Faculties > Social Sciences > Kent Business School > Accounting and Finance|
|Depositing User:||Rebecca Stevenson|
|Date Deposited:||06 Jan 2010 12:24|
|Last Modified:||27 Jan 2010 12:54|
|Resource URI:||http://kar.kent.ac.uk/id/eprint/23570 (The current URI for this page, for reference purposes)|
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