The prices of silver and exchange rates in a metallic monetary system - the cases of India and Iran

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 . (The full text of this publication is not available from this repository)

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Official URL
http://dx.doi.org/10.1007/s00181-005-0037-2

Abstract

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.

Item Type: Article
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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