Are there any mathematical equations that can be used in the economic realms of Currency Value, Exchange Rates, Inflation Rates, etc. REFERENCES VERY HELPFUL!!!!!!!!!!
2007-09-12 04:44:46 · 4 answers · asked by theMayne 2 in Social Science ➔ Economics
Not really. Most of exchange rate forecasting models fail the Granger causality test; whatever you use to forecast currency values (interest rates, inflation, forward premium, etc.) works no better than a univariate time-series (ARMA or ARIMA) model.
Read "Elements of Forecasting" by Francis Diebold; there is a chapter there that describes building an ARIMA model to forecast the value of the Japanese yen.
2007-09-12 05:20:14 · answer #1 · answered by NC 7 · 1⤊ 0⤋
No, as far as I know. Economists can foresee what will happen following simple steps but always within a range of values. This steps can only be developed respecting some general accepted rules by the markets and governments. For example, a rule for all economists is that exchange rates do have to reflect what´s going on with imports and exports. Of course this is a single rule that has to be completed observing monetary funds going in and out of the country.
2007-09-12 06:36:00 · answer #2 · answered by azkazk2005 6 · 0⤊ 0⤋
the cost of a countries foreign places funds is desperate via quite a few ingredient in spite of the fact that in common terms 2 are rather worth putting forward it. One, only positioned, is furnish and demand. the optimal traded currencies are the greenback, Euro, and Yen. they have a extreme substitute fee via fact they administration their marketplace zones and all worldwide banking transactions are achieved in that foreign places funds. the 2nd is an oblique relationship to investments and a 'risk u . s . ingredient.' The greater investments and the the better letter grade (A being the optimal) obtain via a rustic additionally help confirm the cost of that's foreign places funds. GDP in spite of the fact that could be a ingredient, has little to do with the certainly fee of foreign places funds substitute. The Yen isn't valued low in any respect, in assessment the greenback is low priced whilst in comparison with the yen. the reason that $one million is worth 118.31 is via inflation in Japan.
2016-12-16 18:12:51 · answer #3 · answered by schebel 4 · 0⤊ 0⤋
Currency values fluctuate daily.
2007-09-12 05:01:06 · answer #4 · answered by Anonymous · 0⤊ 0⤋