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Currency - Science topic

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This is the current situation in Nigeria.
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The best way is to rebased the currency and to reduced the country foreign currency reserve.
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I want to apply for Ph.D. in the digital economy, but till now I haven't found the right topic to write about in my proposal. I want to know what the trend is?
Is digital currencies a good one to search about?
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Dear Maha Alfageeh,
Yes, digital currencies are currently a developing and topical topic. I propose the following research topic for my PhD thesis: The impact of the development of digital currencies on central banking and commercial online banking. Within this topic, the following issues could be considered: changes in domestic and international interbank settlement that could occur following the introduction of digital currencies; the potential impact of the introduction of digital currencies on foreign exchange markets; an analysis of the determinants of the introduction of digital currencies.
Greetings,
Dariusz
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Suppose that you are a member of a national committee to regulate the informal market of foreign currency (“Square” Market in ALGERIA). What are your first three decisions?
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thank you Peterson K. Ozili for you reply
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Please keep the answers short, focused &The proposals should be practical and applicable.
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Dear Prof-Djouadi Noureddine,
If the normal currency market is accessible, fair, and properly regulated, the parallel currency market, if any, may get weakened.
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Dear all, I am conducting a global study on Earnings Management and I use Compustat Global as my major data source. Unfortunately, financial data are presented in local currencies. I need to convert all these currencies to USD equivalents in Stata to aid comparison.
I would be grateful if any support is given on how to write a stata command to execute above.
Thank you.
Daniel Akpan
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Currency rates depends upon number of factors, inter-alia, including balance of payment. For example - an increase in current account deficit of any country may thus depreciate its currency rates. What are the reasons that results in the breakdown of this model - wherein the currency rates just go haywire in a quick sequence of events? Moreover, once the normal behavior of the currency rate is lost - it becomes very difficult to bring back normalcy. What makes this recovery journey so slow and painful?
Other connected questions are - Is currency rate a mere number? Why US Dollar currency rates are more or less independent of the its economic performance?
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Whether the exchange rate of a currency truly reflects the economic development of any country ?
If the whole world migrate to a uniform global currency - what will be its consequences?
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Hello
Is there an article about effects of digital currencies on money creation and banks liquidity or total liquidity?
Or what is your opinion? Do these currencies have an impact on money creation and banks liquidity or not?
thanks.
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Mohammad Heidari It is an interesting point that technological progress cannot be stopped. If a technological development is shown to be harmful then it is up to government to block that technology.
Thinking of examples, human cloning is technically feasible but blocked, nuclear weapons should have been stopped and now we have the problem of reversing that so called progress. 5G technology might turn out to be harmful in ways we don’t expect.
I put cryptocurrency in a category which could be damaging to the global financial system and governments through their central banks have the potential to contain the problem.
I can prove that Bitcoin has no intrinsic value. If you introduced a new crypto coin say Bitcoin2 and big companies like Tesla or Amazon switched from Bitcoin to Bitcoin2 then everyone would follow in the expectation of big gains and the value of the old Bitcoin would fall. The whole system is too open to market manipulation and insider trading.
Cryptocurrency continues to be the financial instrument of choice for illegal trading and criminal activity and it needs to be controlled.
Richard
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I have multiple asian countries....to check the herding spillover I have to take one countries market return as a independent variable in another countries model equation...I have the return in their own national currency...can I add variable without changing currency or do I need to change and all countries should have a same denomination?
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Thank you so much sir for the guidance...
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I received an invitation to author a book chapter in an open access book from a relatively well-known publishing house recently. When accepting the invite, I had mentioned my lack (complete absence, to be honest) of funding to pay OAPF and was assured of waivers. However, now that my chapter has been submitted- AND accepted, they are providing a 70% waiver, citing inability to provide full waiver. Post discount the amount is ~400GBP, which converted to my native currency is higher than my monthly fellowship. Are such high OAPF’s the norm? Especially for invited chapters?
And are there any sponsorships available to help me in paying this amount?
My only other alternative is withdrawing the chapter.
Please advise!
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Thanks, Nathan Shaviya . I agree, but open access charges are still a hurdle for researchers who do not receive apc through their grants/fellowships… and unfortunately post-covid, i find it a trend among most publishers to reject manuscripts who do not want open access in favour of those who can afford the fee.
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Rupees, the Pakistan's currency unit, has swung up to PKR 102/US$ from the 112/US$ in last two years. The economic fundamentals (one is remittances inflows and resulting foreign exchange reserves) explain this appreciation partially and a large part of it remains unexplained (Residual). Other than, economic, the political factors seems in operation. What specific factors you think responsible for appreciated Rupee?  
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Inflation is the main factor affecting exchange rate in Pakistan.
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With Covid-19 the Education landscape have change for ever and Digital Transformation is rising to new horizons. With the Edorer and CredX students anywhere on the planet will have access to best quality of education and best learning experience by most qualified Faculty 24/7/ Partnering with global universities will be a piece of cake with CredX. Wold Assessment Council promotes a truly a revolutionary idea and a boon for collaboration with global universities. Inviting visionary universities to join the future of Credits Exchange and the global university collaboration network.
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First, I have to thank you for raising this. Trade and education are literally the most critical bottlenecks that, if addressed, humanity's scientific and engineering output increases most.
I have two responses below:
  1. One is a strict response to technologies that you have specifically named.
  2. Another is a broader view from my own perspective, where I attempt to answer a more fundamental that I think will guide us to even better outcomes.
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1. Response Limited to Named Technologies
1.1. Blockchain
While blockchain's computational scalability problem is somewhat addressed (e.g. adoption of PoS than PoW), its space scalability problem is far away from being addressed. This is both, storage space, and bandwidth. This is part of why we will never be able to use today's crypto "currencies" to buy daily items, such as a cup of coffee at a local Starbucks store.
To make cryptocurrencies function as "currencies", we must solve the following problems:
  1. Proofs of coin ownership must be confined in the wallet of the owner, not in the public blockchain.
  2. The global blockchain must contain only minimal data to indicate consensus about transaction orders.
  3. The global blockchain must update minimally and organically. E.g. a person buying a cup of coffee in China should not be heard in USA instantly.
  4. The boundaries must be decided organically and dynamically by the algorithm itself. E.g. we must not have to sit to manually create clusters of trade groups for every reach by hand, as this will be too slow to change in the future, and we will suffer an unnecessary overhead in optimising such cluster boundaries as trade patterns shift.
Ideas that might solve the problems above:
  • (1) and (2): A promising line of research, that is still not mature enough to the best of my knowledge, involves the use of zero-knowledge proofs. If a space- and time-efficient zero-knowledge proof algorithm is found, then we have solved the first and second problems in the list above.
  • (3) and (4): I am not aware of any solution that satisfies these requirements yet. However, I'm optimistic that there is an elegant solution by abandoning micromanagement, and letting individuals who are involved in the trades choose the path which their transaction must cross. I am optimistic that it is very doable, that through a set of rules, we can create a system that incentivises individual buyers/sellers to behave in such ways that news about their transactions are not unnecessarily heard of internationally (e.g. a coffee cup purchase in China is not heard in USA, but instead a more aggregate news is yeard). I am very optimistic that these can be resolved by a set of simple rules in the currency, and then letting capitalism do its job.
1.2. CredX
Certainly a step forward. To save time, I will not speak about its many advantages which we agree about. I will jump into its disadvantages:
  • Centralised: What if CredX decides to ban some subjects from being taught? Or even bans some students, or regions, from joining it? For example, while I'm against Putin's aggression on Ukraine, what guarantees us that CredX would not face a scenario where enrolled Russian students suddenly become unable to use it? The moment we have a centralised system, we will run these risks, and since education is so pivotal to humanity's progress, I believe we must never allow our education to be so vulnerable.
  • Growth is not organic enough: Who approve which courses enter is CredX essentially. Science changes its landscape dynamically, and we must not impose any resistance on how science is shifting its playground. Are today's university course structures, or taxonomy, optimal?
I think the solution is to adopt a distributed system, with a distributed protocol, ideally even anonymous, where individuals conduct research in a peer-to-peer manner.
I have written a discussion post here with details about this thought concerning the academic peer-review system, however it probably also applies to education in general, as paper acceptance can be viewed as passing a course (e.g. passing a course can be viewed by getting acceptance by enough credible peers in a web-of-trust network).
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2. Broad Response from my View
2.1. Today's Education Problem
Today's educational system, starting from school, is based on a factory-like production pipe-line that students enter from one end of the pipe, and exit from the other end of the pipe, supposedly equipped with enough prerequisites to go on with their life as humans to supposedly build a better future. Within this pipeline, the students are given courses as "boxes" and subjects, where them "atomically".
I claim this is very wrong, and eventually causes individuals with different ineterests to unnecessarily spend their time facing subjects that do not interest them, and do not plan to use them in the future. As a result, we effectively kill the love of science and education in these individuals.
Sadly, at the end of this production pipeline is a sad reality where you hear statements from those who have exited it "I hate mathematics/physics/etc". This is very sad, as we were all born as scientists, loving to experiment with the physics of this universe (this is why a child is so excited when playing with, say, balls) and to use logic to solve the puzzles (mathematics).
2.2. How Education Should Be
Education should be purely research-oriented, based on the interests of an individual, with a smooth seamless transition from early steps that we take as children, until the later steps that we take as grown scientists.
To be specific, I propose this educational style:
  1. An individual (could be a child, an adult, etc, age is not important) enters an educational institution, and sees the wide spectrum that possible outcomes that science and achieve (e.g. robotics, rockets, algorithms, etc).
  2. The individual chooses the projects that he/she wants to work on based on what seems most fun to them. We can rename such educational institutions into "Fun Parks", because it is really meant to be enjoyed, and we -humans- have evolved to love science. So nature has done a great job to make sure that we are born as scientists.
  3. Mentors will guide the students on the path that they should follow to achieve their goals, and help them to find out intermediate steps (or sub-goals) to help them with their journey to eventually reach their end goals.
  4. A student could have multiple goals, and they may choose so. A student could multi-task and jiggle between different goals and sub-goals as they enjoy most. We must let individuals have fun in their own unique way, in the most flexible form possible. This freedom will allow individuals to explore the space of scientific discoveries and inventions most broadly, and hopefully result in more scientific and engineering progress overall.
  5. Such education institutions (or fun parks), must have an element of rewards. For example, at the end of each year (or any other period depending on how it works best), there has to be a party where teams from all generations demonstrate their projects publicly, in a fun competition with rewards from sponsors (e.g. monetary rewards from governments, companies, etc). This element is very critical in order to re-energise students that are early in their path: to be re-excited again about what is ahead, and how doable it is.
  6. As you see, there is no rigid production pipeline here, but rather a messy mesh of threads chosen by each individual as he or she likes. You will not see a person being forced to, say, learn memorise theorems in a mathematics course in order to "pass", as this will make them hate science.
All of the steps above can be done physically in a building, or digitally behind a website, depending on the subjects, and depending on what works best.
There is no distinction between "school" or "university" any more, but an organic path chosen by the individual. Governments and companies, or even individuals with enough money, will submit their research problems to such "fun parks" to get them resolved. It will be a win-win situation for everyone.
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Commonly I keep seeing papers were VAR is performed first before a Granger Causality test. In my test I have first done VAR before performing Granger Causality on volatility of currency pairs.
to determine if A currency pairs past values can determine B and C currency pair's future volatility values and etc., etc.,
I'd like to know whats the idea behind performing VAR first? In as simple terms as possible
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Granger-causality tests merely provide information about the forecasting performances, and thus focus much on the forecasting abilities of models - the main aim being to reduce the forecasting errors. Now, given that a Granger-causality test is specified within a VAR system, VAR is first performed to determine the lags that are statistically significant for inclusion in the Granger-causality test model.
Example: consider a bivariate system simple case in which there are two time-series variables, X and Y, which are being modelled in a VAR(3) system.
A VAR(3) model made up of two equations of X and Y variables becomes specified as follows:
Xt = c1 + ∑(i = 1 to 3) α1, Yt−i + ∑(i = 1 to 3) β1, Xt−i + ϵX,t
Yt = c2 + ∑(i = 1 to 3) α2, Yt−i + ∑(i = 1 to 3) β2, Xt−i + ϵY,t
To test if X Granger-causes Y, there is need to first determine if there are any lags of X that are statistically significant in the model within a VAR system/framework, hence why the VAR is performed first before conducting the Granger causality test.
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I have a purified enzyme. I need to test its activity. Enzyme requires ATP as energy currency. I have disodium salt of ATP (A2383). According to specs sheet if the solution will be prepared it would have PH 3.5. As the enzyme works between PH7.3 to 7.6, therefore I want to adjust the PH of ATP solution to neutral.
In this case what should be the best between NaOH and Tris to adjust the PH7.
Note:
Enzyme buffer already contains;
Tris (PH7.6) 40mM
KCl 25mM
MgCl2 5mM
DTT 4mM
2% Glycerol
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You are right that you don't want to prepare the ATP in an acidic solution- it will spontaneously hydrolyze into ADP at acidic pH. Typically you want to make a stock solution at or just above pH 7.0 (I do pH 7.2) using NaOH or KOH (I use KOH). Recipe I follow is: 551mg ATP, 1.2mL water, 415uL 5M KOH, check/adjust pH (use a few uL on narrow-range pH paper), add water to final volume of 2mL. Aliquot and store at -80C.
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Would CBDCs offer "net benefits"? Definitely, no one size fits all and each country or region has its own specific. One should take into account both supply and demand side. On the demand side, among the relevant features of a CBDC there are: privacy, security, usability, the absence of additional costs. On the supply side, all kind of risks should be taken into account. Until the adoption of a CBDC, its widespread acceptance is crucial.
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What are the risks of using the old money … coins, banknotes, giro accounts?
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What is the future of traditional money (coins and banknotes )... in light of the acceleration of the launch of crypto and digital currencies... and how do you see the future of cash payment? ..Are we heading towards a cashless society...Do cryptocurrencies have risks..compared to their advantages
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Othmane Touat: There is a 3000 years old Zadokite saying, "keep all your assets in gold (for it has been blessed by G-D) and never be in debt". In today's world where paper currency, without the gold standard, equities and other financial instruments are used our Hakhamim has advised us zadokites to invest in equities but always to have gold bullion as our major asset. this means except for owning our homes (and cars) we do not invest in real estate, currency trading, interest bearing financial instruments or the new fad of cryptocurrency. we do keep enough cash on hand for daily and emergency expenses. for a people whom G-D has Said, "you shall have no land as homeland or as inheritance because I am your possession and inheritance forever" and had been wandering for 3000 years sometimes given a night to pack up and leave this is the best way for us. of course this is not for others or everyone. thanks.
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I have panel data of various countries where exchange rate is one of the variables. I have an exchange rate denominated in local currencies only. My question is that Do I need to transform local currency to dollar denominated currency?
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If you are using the log of the exchange rate in your analysis it is not important which one you use as
log(US dollar price of one unit of domestic currency) = - Log (domestic currency price of one US dollar)
If you are considering comparing volume series (real GDP) at constant prices you must convert them at base year (or quarter) exchange rates. Otherwise, you will be contaminating your common currency volume data with changes due to changing exchange rates.
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A digital currency is any type of payment which is in electronic form and is accounted for and transferred using computers. Examples of digital currencies are cryptocurrency, virtual currency, and central bank digital currency. Well known cyptocurrencies are Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), Dogecoin (DOGE), Polkadot (DOT), Stellar (XLM), Carnado (ADA), and Bitcoin Cash (BCH). I am researching cryptocurrencies and would like to know why Banks forcefully oppose the use of digital currencies. Any sugestions would be very much appreciated.
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Yes of course
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What are the economic effects of the spread of the COVID-19 epidemic on the economies of developed countries and the value of global currencies?
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the continued spread of Covid-19 does significantly raise exchange rate volatility. For government responses, the existing literature believes that intervention policies during the pandemic may have had a counterproductive effect on stock returns and caused poverty and inequality. However, our research provides some different perspectives. Therefore, when a government adopts various intervention policies for Covid-19, it should fully consider the resultant impacts and try to eliminate any adverse ones on the overall economy.
Cfr.
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Is the independence of the central bank from the government full and real now? What is your opinion about the central bank's independence from the government?
Is it full and real independence? Should there be full independence or only on some issues?
Or maybe the central bank should run a fully coordinated, parallel cooperation with the government regarding the common economic policy?
Should the monetary policy of the central bank be coordinated with the government's budget policy and to what extent? How is it in your country now?
How do you assess the issue of cooperation between the central bank and the government?
Should the central bank be used by the government to conduct a specific interventionist, anti-crisis economic policy?
Please reply
I invite you to the discussion
Thank you very much
Best wishes
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Hereby I would like to propose the following research topic: Information policy of the central bank versus the reputation and credibility of the key financial system security institution. In a situation where the central bank, in its ultra-liberal and mild monetary policy and correlated with the government's economic policy, becomes too deeply involved in political and media issues, it begins to lose its positive image. Currently, in the country in which the president of the central bank operates, i.e. the National Bank of Poland, when seeking re-election, he conducts a kind of "election campaign" in the meanstream, pro-government public media, constantly announcing what patriotic and pro-development activities the central bank plans to implement in the coming years. These promises were already promised, such as direct financing of the armed forces, financing the construction of the first nuclear power plant. In addition, such statements of the NBP president at press conferences that the employees of the central bank defend the economy most patriotically, that the central bank is independent of the government, that NBP analysts may also be wrong, that issues regarding the economy and inflation are extremely complex, etc. NBP from the point of view of international financial institutions. To this should be added a policy of not increasing the financial system's safety reserves, consisting in the fact that every year, almost the entire profit of the central bank is transferred to the state budget burdened with high public debt, instead of supplying the reserves of this bank. In the event of a global economic or financial crisis, the exchange rate of the national currency was declining, and after the economy exited the recession, it did not rise adequately, it did not return to the levels from before the crises. By carrying out non-transparent public transactions on international financial markets, the central bank additionally lowered the value of the domestic currency, and the NBP governor explained at press conferences that it was done on purpose to improve the profitability of exports, not to mention, however, that in this way the central bank generated above-average profits at the end of the year. which was then transferred to the state budget. At the end of 2020, NBP was deliberately weakening the domestic currency in order to generate a greater profit for NBP at the end of the year and for the entire fiscal year 2020. NBP admitted it on Twitter and this post quickly disappeared from Tweeter. The idea was for the greater profit from the NBP to go to the state budget burdened with the budget deficit increased by the Anti-Crisis Shields used. In addition, at the expense of citizens, at the expense of foreign currency borrowers, the central bank in Poland transfers its extraordinary profits generated on speculative transactions on international financial markets to the state budget instead of supplying the central bank's reserves and building a more secure domestic financial system. Are there other examples of this kind of parody in the context of a central bank's monetary policy?
Best regards,
Dariusz Prokopowicz
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The Tobin tax is a tax on financial transactions, whether the sale of shares, currency transactions or financial derivatives, which was proposed with the purpose of avoiding speculative movements. The origin of this tax comes from 1971, when this rate, which receives the name of the Nobel Prize for Economics, James Tobin, was only intended to tax and control the speculative movements of foreign currency from a fiscalizing rather than a collection aspect.
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Seems there’s some correlation between the Tobin Tax and basil II. Maybe some form of adoption in IFRC would merit uniformity
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Islamic Money
During the period of prophet (may peace be on him) not only Dinar and Dirham but also some homogenous commodities e.g., wheat and barley and dates were used as money. These derived their purchasing power from their intrinsic value. This continued during the period of Khulfae Rashidun (may Allah be pleased to them). Dinar and Dirham are most stable single commodity based measures of value and these were used as common medium of exchange and Shariah used these in description of its universal provisions. Thus these were used as measure of value and unit of account, and store of value and there is no disagreement on these issues. Sale on credit and Riba free loans Musharikah and Mudarabah were in practice, Riba was strictly prohibited and Zakah was imposed and these constituted the most important features of monetary and financial system of Islam. Therefore those who hold that Islam has no preferred monetary/financial system are clearly wrong.
Nothing other than common medium of exchange can perform measure of value function of money. However to perform as a measure it must be a highly reliable and stable measure of value/purchasing power. Shariah ordains utmost care to ensure just measurement and thus to be held to be Shariah compliant common medium of exchange must have most stable value. We may not emphasize other conditions as fulfillment of this condition normally ensures satisfactory performance of other functions. This ensures economic justice and efficient Market as well as allocative efficiency. Further other forms of money should be allowed restricted use to fulfill such other monetary needs of the economy that need to be met to ensure that monetary constraints do not hamper economic growth. Price as well as purchasing power of everything varies with respect to anything else due to relative changes in supply and demand. Purchasing power is normally measured with respect to a representative basket of national product. As regards freely floating fiat money a defined representative basket of national product is the right measure of its value and thus constancy of purchasing power of freely floating fiat money as normally determined implies that it will discharge the measure of value function of money efficiently. It follows that economic justice and growth in a non-exploitative (Reba free) economic system requires that monetary and fiscal policy be geared to ensure nil rate of inflation.
Reference
Hifzur Rab (2009). Freedom, Justice and Peace Possible Only with Correct Wealth Measurement with a Unit of Wealth as Currency. Paper presented at International Conference on Unity of Sciences held on Jan14-15 at BCG trust University Chittagong. Published HIJSE 26:1, 2010.
Hifzur Rab (2010). Interest, Monetary Manipulation and Misunderstanding are Stifling Emergence of Just and Efficient Islamic Alternatives. Paper presented at Seventh International Conference on Unity of the Sciences held on Jan 10 at UKM, Malaysia. Published HIJSE 27:3, 2011.
Hifzur Rab (2014). Poverty Systemic causes and eradication. Paper presented in 2nd International Conference of CIIS: Poverty Alleviation and The Social Contract, Universitas Sultan Hasanuddin, Makassar, Indonesia November 26 and 27, 2014. Published in 2016 in Choudhury M.A. & Uzir A. M. (Ed.), The Social Economy: Poverty Alleviation and Social Wellbeing Series, Journal of Ethics, Economics and Finance Volume 1, Nos. 1&2, 2016, Special Issue P81-108, Cambridge Scholars Publishing.
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I read your paper and found a good effort to develop a reliable measure of poverty level of impoverished people. However, it does not take into account effect of technical advancement making it harder (with time) for the poor uneducated and unskilled people to earn their living and causing pollution due to increasing energy consumption that continues to increase leading to increasing cost of living.
As regards monetary issue I have raised it need to be seen that it is to ensure that the interest based exploitative mechanism that suck the blood of the poor by monetary fraud is properly understood and addressed. What I am working for is to ensure that this massive fraud that is most important cause of poverty and deprivation is eliminated. Most other efforts to address poverty normally amount to providing some relief for the poor so that this most unjust and oppressive economic system does not collapse.
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Already at least several commercial banks have created their own cryptocurrencies. Some investment funds invest part of their assets in selected cryptocurrencies. Recently, the investment bank JP Morgan has created its own cryptocurrency JPM Coin. Cryptocurrency JPM Coin will be used to settle initially a small part of the transaction, which JP Morgan performs on a daily basis for a total of about USD 6 billion.
Thanks to JPM Coin, settlements between business partners should take place immediately, ie much faster than the current standards of transfers. However, apart from accelerating the time of the transaction, what are the other goals for banks to introduce their own cryptocurrencies?
Could investment banks create a new type of collateral for transactions in the event of a possible strong loss of the USD dollar in the event of another global financial crisis connected with the currency crisis? Such a risk exists if the problem of growing public debt in the US is not resolved and banks in China cease to buy US Treasury bonds.
Do you agree with my opinion on this matter?
In view of the above, I am asking you the following question:
For what purpose do banks create their own cryptocurrencies?
Please reply
I invite you to the discussion
Thank you very much
Best wishes
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Recently, there is a tendency to affirm that bitcoin will not be admitted as a payment currency for an “ecological” reason, that is, due to the high energy consumption that mining the cryptocurrency carries. At the same time, it seems that clients of investment banks no longer have the same interest in cryptocurrencies.
See the following link:
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Joseph Stiglitz, Nobel Laureate in Economics in 2001 and former Chief Economist of the World Bank has repeatedly explained why he believes that bitcoin should be banned.
"The real reason why people want an alternative currency is to participate in vile activities"
"What we really should do," he said, "is to demand the same transparency in financial transactions with bitcoins that we have with banks." If this were to be done, he believes, the bitcoin market "would simply collapse."
Do you agree or disagree and why? Thank you
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Cryptocurrencies can offer things that have never been possible before. Let's take a look at some of the main reasons why people are so eager to abandon traditional forms of currency in favor of cryptocurrencies.
1. Distrust of the current financial system
Bitcoin was revealed to the world after the global financial crisis of 2007-2008. This is a completely new way of thinking about money, finance and banking. During this time, people around the world have been hit hard by the reckless behavior of large financial institutions and the inability of governments to regulate them. There was a huge sense of distrust throughout the system and a strong desire for something new.
In addition, it goes without saying that cash can be easily stolen from your pocket with a near-zero chance of finding criminals. Even more: Recent research has shown that money laundering is 800 times less common than cash currency. Simply put, traditional money is a widely used tool for financial criminals.
This seems to be a good environment to introduce a new type of currency. People quickly saw the value of this bitcoin and jumped on it to make it one of the fastest growing new technologies in history.
The big difference with Bitcoin is that it is decentralized. This means that no company, government or organization has complete control over the currency. This is in stark contrast to traditional currencies such as the US dollar. The US government can create any US dollar and devalue it. This happened on a large scale after the global financial crisis. They can also take back US dollars at any time.
Bitcoin and cryptocurrencies offer a new form of currency that is not controlled by any authority. It cannot be seized and it cannot be inflated by an irresponsible government. This is the biggest reason for the rise of cryptocurrency so far.
2. Get rich quick
Unfortunately, the technical steps and ideology of cryptocurrency are often overshadowed by skyrocketing prices. Many people do not really care about its decentralization, they just want to buy the cryptocurrency to make a quick profit.
Many who bought Bitcoin in the early days became millionaires overnight. There are countless stories of ordinary people and early investors who have made their fortune in bitcoin with relatively little initial investment. These stories capture people's imaginations and make them rich.
It is this mindset that has sent cryptocurrency prices down to their cars. The 2017 bubble was led by people who want to raise prices. The next fall was due to the same people fleeing the market as soon as things turned south.
There have also been many cryptocurrency companies and projects that have seen an opportunity to take advantage of the limited space regulations. They wanted to increase the value of a particular token as quickly as possible, without giving much value to the world.
This method of getting rich quick has caused many to lose interest in the entire cryptocurrency project. The promise of quick profits is still a major driver of cryptocurrencies and bitcoin.
3. New financial plans
Another reason people are attracted to cryptocurrencies is the completely new uses of financial alternatives. These programs are called "decentralized finance" or DeFi programs for short.
Some of the top DeFi programs offer innovative approaches to peer lending. Financial compound is one of these approaches. In their decentralized system, users can lend at any amount, without putting these funds under control. Everything is done automatically with smart contracts in blockchain.
dYdX Exchange is another interesting DeFi application based on cryptocurrency. This is a decentralized method of lending and money lending for cryptocurrency trading. dYdX is also a "no-confidence" program, so you never have to give up controlling your budget to access the benefits of borrowing. You do not need to register or confirm to start selling immediately.
Another example of a new application made possible by cryptocurrency is CryptoKitties. This is a game where you can use your Ethereum tokens to buy, sell and produce digital kittens on the Ethereum network. Each kitten is unique in terms of cryptography and is potentially worth thousands of dollars.
These new programs are not possible with traditional currency and will still be a big card for the world of cryptocurrencies.
4. Low cost border payments
Perhaps one of the biggest incentives for financial companies to start testing cryptocurrencies is the possibility of low-cost international payments. International payments are still very expensive and difficult for banks. Utilizing new technology
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1. Is there any data available on the quantity of bad or doubtful developing country debt owned by multi-lateral development banks and governments which has been written down?
2. Would MDBs be able to accurately estimate the difference in value to them of a loan they might make to a developing country in hard currency vs local currency?
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Thanks Lilian for both of those. In addition, the world Bank has a database of outstanding debt. What I have not been able to find though is the degree to which this has been written down, where the lender no longer expects to receive full repayment and has accordingly represented this in their books.
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Kindly share your experiences if you have any idea and experience regarding bitcoin.
Thanks
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Bitcoin is nothing more and nothing less than unlicensed gambling.
Details are in my book: Bitcoin: The Mother of all Scams. https://www.amazon.com/gp/product/B095NMLM2F
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A few years back the organisation DollarDaze.org had published a "study" concluding that the average fiat currency has a life span of 27 years.
This study was subsequently debunked by the Financial Times:
Hence, dear colleagues, could you point me to a truly scientific study that has assessed the life span of fiat currencies?
I would be grateful for any pointer!
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The legitimacy of fiat currency depends on the government issuing it. Its acceptability will depend on the people willing to provide goods and services in exchange. Predicting its average life span depends on the sample size, the time period and events happening. Inflation and change of government will be major causes of the demise of fiat currency.
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Are we finally moving to a rebranded gold standard with crypto currency? Read this article to consider the model for this discussion.
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@Kazi Mohammed Mahbobor Rahman How can the globe limit this considering that actors in the market are outside the circle of Economic regulators?
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Hello everyone,
I am working on a project which includes object recognition, currency recognition, text to speech, and location of the user. In order to perform the currency recognition of Pakistan's currency, I'd need a lot of data and computing resources to train a model, but unfortunately, I don't have access to either of these.
So, I just wanted to know whether there is an open-source pre-trained model that I could use for my project?
Any help would be appreciated.
Thank you.
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Is it better to have a Lot of bitcoins compared to rather having a lot of paper money or savings at the bank ? Thoughts
#cryptocurrency #money #bank
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Actually many people are using cryptos now to store the value of their money or assets. However, I think cryptos are not good always to store the value because of the volatility.
kindly see the the documentaries of (Plot) YouTube channel in the YouTube, they are talking more about this.
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One of the critical tasks of a researcher is to choose an an appropriate blueprint to interrogate the issues of a research . The multi-methods design appears to be gaining currency in social science research in recent times. Since the choice of designs are driven by a researcher's paradigmatic orientation, which of the research orientations are associated with the multi-methods design?
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The statement that "choice of designs are driven by a researcher's paradigmatic orientation" is now considered to be rather old fashioned. Within the field of mixed methods (i.e., the combination of a qualitative method with a quantitative method), the choice of methods is determined by the questions you are asking and the results that you want to achieve.
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What if we use energy as a kind of money?
the bank stores energy instead of convention money, which could be oil, ammonia....
the banks will provide and invest fuels to every business that consumes fuels such as electricity generation, industrial factory....
each people will have one bank account and stores their energy in the bank, then they can buy product and pay utilities fee using a kind of card, same as credit card.
In case of quick and small transactions, people can use check.
Since every activity of human consumes energy, the value of energy is constant to human needs. So there would not be inflation of energy money? Since technical value of energy is not determined by people or society cross the globe, energy can be a kind of independent currency liked Bitcoin.
Does it help human life easier and the world develop more stably?
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Good day! What do you call a currency - it is still a currency - there was such an experience in the USSR - instead of the ruble, they introduced 1 work-day - but it made no sense ...
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Incredible front cover page from Time magazine to coincide with the #nft craze. Time will now accept #cryptocurrency as a form of payment for their digital subscription.
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I do not think so. CBDCs, in case they will be implemented in one way or the other, will just be fiat money in a digital form. The question is whether public/permissionless cryptocurrencies will be able to replace fiat. I consider this to be unlikely since this might interfere with current governance structures.
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Until very recently, the idea of knowledge-related cultures had little currency.
Knowledge creation seemed a matter of rational, cognitive, and technical procedures
undertaken by scientists; it neither needed nor did it lend itself well to cultural or any
other kind of social scientific investigation. Traditionally, philosophy had taken it
upon itself to explore the methods of science, but philosophy being philosophy was
not interested in the empirical question of how knowledge was produced. The
assumption of the unity and universality of science that had emerged since the
time of the Vienna Circle of philosophers contributed to the division between
knowledge and culture. If there was only one scientific method and one knowledge,
how could the notion of culture apply to science?
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To remove the possibility of validating indigenous knowledge, regimented pee_(re)viewed mass production of present-day academic science is taking every conceivable measure to raise obstacles to non-intersubjectivistic knowledge.
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I am doing a regression analysis with following variables:
Debt forgiveness grants (current US$) [Independent var]
GDP per capita percentage (constant 2010 US$), [Dependent var]
[Control var:]
Exports of goods and services (current US$),
Foreign direct investment, net inflows (current US$),
Total natural resources rents (current US$), and
Oil Crude Prices (2019 US$ per barrel).
My question is, should I use a common unit for all of them. If so should it be current US$ or constant 2010 US$?
Also for the independent var and oil prices, constant values aren't available, so should I convert them using CPI?
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Kartik -
I don't understand. Is this a time series? You have "GDP per capita percentage (constant 2010 US$), [Dependent var]." GDP in one year is just one number, so I guess this is a time series. But then 2010 dollars means one case also. So I don't get it.
If it were a time series, then I suppose the year for the dependent variable needs to match with the year in the independent variable that most impacts that 'dependent' year ... maybe the same year or a lagged year, or both.
If this were for a finite population in a single period, my area, I don't know what population you mean. In such a case, regressor data could still be from another (previous) year, but I don't see what your population is supposed to be.
Cheers - Jim
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Could you please explain it in simple words in terms of trade competitiveness pressure, multinationalization of production and integration of financial markets. Also, exchange rates of state's currency.
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Globalization has been around for some time and has a strong impact on the economy
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We know that the economic situation isn't good in the world because of this pandemic (COVID-19) including Turkey. So recently Turkey has taken some steps for its economy. 1st step: currency swaps with other countries amid this pandemic. After then some increased in the value of lira from the dollar. 2nd step: reinforcing its economy (Implementing long- and short-term economic stimulus based on Turkish lira with low-cost financing programs).
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Since the start of 2018 Turkish Lira has fallen by at least 35% against the US dollar. There have been concerns in the financial markets about the the Turkish economy.
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Will the share of transactions made with traditional money issued by central banks decline successively due to the development of cryptocurrencies? What are the consequences of this process in a country with large and growing public debt?
More and more large companies are announcing the creation of their own cryptocurrency. Some investment banks, such as JP Morgan, have announced the creation of their own cryptocurrency for settlements with key contractors. Some technology companies operating in the field of ICT and new online media also plan to develop blockchain technology in cryptocurrency applications. For example, the social media portal Facebook also announced the creation of its own criticism called Libra, which the users of the portal will be able to pay for various services available through Facebook. Some investment funds invest their financial capital in some cryptocurrencies.
Whether in the context of the development of cryptocurrencies, the share of transactions made with traditional money issued by central banks will gradually decrease. Will the development of cryptocurrencies and their rapid dissemination not jeopardize the stability of the monetary systems of some countries? If the share of traditional money in total transactions made by citizens will decrease, will the significance of the financial system, including the banking system, also decrease? If there is a large unpaid public debt in a given country and a decrease in the use of traditional money in transactions between entities, can it lead to a serious financial and / or currency crisis? Many countries finance their public finance debt by issuing Treasury bonds in which foreign financial institutions also invest. So, can future cryptocurrencies be used for international settlements in the future? Can the decrease of confidence in the national currency of a heavily indebted country lead to an increase in international settlements using cryptocurrencies?
Do you agree with me on the above matter?
In the context of the above issues, I am asking you the following question:
Will the share of transactions made with traditional money issued by central banks decline successively due to the development of cryptocurrencies? What are the consequences of this process in a country with large and growing public debt?
Please reply
I invite you to the discussion
Thank you very much
Best wishes
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It’s difficult to answer this question with complete confidence. Perhaps a middle ground needs to be reached; banks need to do more to understand and accommodate the blockchain technology behind cryptocurrency, and the creators of new cryptocurrencies need to consider and appreciate the importance of traditional banking practices. Cryptocurrencies developed on blockchain platforms could prove to be perfectly suitable for the digital age. It is an alternative that is fundamentally different from the existing financial world and it does have the potential to prevail over traditional money.
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What if we go for one single global currency? than every country has its own currency. Currency exchange commission etc. (Advantages/Disadvantages)
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At least for political reasons it is too early to talk about single global currency. But economists can mention plenty of economical reasons as well.
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Is it possible to solve the economic crisis in Iraq by raising the price of the dollar and reducing the national currency? Are there countries or peoples who have gone through this experience?
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Lowering the national currency can lead to food shortages and inflation since imports play an important role in fulfilling domestic demand. Also, capital outflows might occur to take advantage and worsen the situation further. Not an easy economic problem to solve when dealing with expectations.
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I have a stock market index based on US dollar and want to convert it into Malaysian ringgit. How I can change the currency of an index series? Thanks
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Are the stock markets index as the S&P 500 quoted in dollars?
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The relationship between the means of financing public debt and capital flight is an old subject that was not extensively studied. For the bigger part, the emphasis was on crowding out and crowding in effects. Capital flight out of a country due to fiscal and monetary policies that lead to a depreciation of the currency, or an expectation of its decline, such as public spending financed by deficits and expansion of external borrowing under a fixed exchange rate regime, or because of the exchange of currencies with low-interest rates in higher-yielding currencies, carry trade. In addition, of course, to the political situation in the country and the region in which it is located.
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Capital flight is due to citizens more than foreigners. The accessibility to local assets in local currency will enable such flight to take place. Political uncertainty and speculation about exchange rate depreciation, run-away inflation and loss of confidence are among the reasons for capital flight to take place.
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Pros and cons of a digital currency should it be implemented one day
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Great points. Now the thing is we can't benefit from getting interests for our savings. Some banks such as HSBC offer up to 5% high interest rate for savings, which is quite alot if you do the math, accounting for 2% annual inflation, you still earn a net 3% of your total savings.
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No one can ignore that we are entering it in the digital age. The perimeters of central banks are gradually starting to be crossed by the rise of crypto-assets. Especially since the new COVID-19 crisis offers an opportunity for Fintechs to impose themselves given the containment measures and social distancing. The question is asked for central banks, on the adoption of a digital currency for central banks, in order to centralize the system and ensure the safeguard of money for public confidence.
Christian P. Pinshi
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I look at this development as keeping up with the times. Central Banks have to join the bandwagon if they don't want to be left out of the digital/fintech craze. Not too long ago, Central Bank has expanded their balances sheets to deal with Covid-19, following the footsteps of the Fed during the Global Financial Crisis in 2008. Where does this lead us? For most Central Banks, inflation is their ultimate goal and so long that this is not inflationary, then they can go along with it.
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International trading value of one country currency is different from another country currency values. The formulation of deciding this remain a part of global economy policies.
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Maybe through gold.
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If your country is already in debt close to depression, corruption on it's peak, and has lack of maintained basic services throughout it's rural parts of the country, how do you increase it's currency value when one of it's major source of revenue is government loans?
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In order to increase the value of the currency the following should be done:
Monetary Policy Measures
1. Increase the Bank Rate (Monetary Policy Rate)
2.Open Market Operation (Government need to sell securities from the capital market to reduce money circulation on the market).
3. Increase The Reserve requirements
4.Increase the Rediscount Rate
Fiscal Policy Measures
1.Increase taxation
2.Reduce in public expenditure
3.Reduce in Public Borrowing
4.Control of deficit financing
Direct Controls
1.Proper Wage policy
2.Promotion of savings
3.Raising the levels of output
4.Implementation of anti-corruption and public fund commission review
These measure can help!!!!
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CURRENCIE'S value differences in global trading causes costly purchase for low value currency and cheap purchase for high value currency.
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I think in terms of the size it impossible .... IMF is not that big to compensate this for the economies involved. It is I think also a bit out the scope of IMF in terms of their goals
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My research data set is a group of companies from 50 countries around the world; each country uses a different currency. The data that im going to collect is the total tax of each company. The question is how to standardize different currencies and processing them using SPSS. The data should be processed as one set.
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I am also not sure that the data follows the normal distribution that's why I highlighted that Hussein Al-fatlaeh may check the normality assumption before choosing the appropriate test. Nevertheless, non-parametric test can also be employed.
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I want to download either dollar or pakistani currency dataset. I don't no how to download it. kindly help me, anxiously waiting for your replies.
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Hi - did you find such a dataset? I am looking for a similar dataset.
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I am studying pass-through of a currency exchange rate to import prices and have used the ARDL model for the same. On looking through various studies I found that IRF has been used to understand pass-through. I was wondering if I should do an IRF on a VAR model generated using the same variables along with the ARDL results? Will it help to elaborate on the pass-through effect?
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Yes, IRF is a good tool to complement your studies on ARDL. It provides an understanding of how the the shocks to the exchange rate model will behave.
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Biggest strange is that secondary fuels are also energy currencies but they are not primary energy sources. How?
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Dear Ashish Thakur, the electricity is produced mostly based on carbon fuels (coal, gas and oil) combustion, therefore, these are considered as a primary source of energy. I once have read that diesel engine was a revolution because on the glass of oil you can drive about 2 km...
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Linking inflation and fiscal stance
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It Is how taxes are spent. If Govt spend the taxes they collected, it will create an inflationary trend if the supply of goods is not forthcoming. If Govt deficit is funded by taxes, it is relocation from private spending to public spending, if the Govt spend the taxes they collected. If the Govt deficit is monetized, that is not collected from private sector but by printing the currency, it will create an inflation.
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Is the value of a country's currency the best indicator to its economic strength? Most developed coutries have strong economies.
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Economic strength is a long-term determinant of currency strength. In the short-run, the currency is affected by many short-term volatile factors that may not be related to economic fundamentals like social unrest, political development, monetary and fiscal events.
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We know that coronavirus is affected economically in many sectors. Many developing countries are facing more challenges to control their losses.
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It is complex to determine the sectors most affected by each one has its own history, cash flows and pre-virus investments. Obviously the hardest hit are food and beverages, hotels, tourism, retail, transportation, imports and exports.
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The World Food Programme of the United Nations effectively deployed humanitarian aid to 10,000 Syrian refugees using Ethereum, a blockchain-based crypto currency.
In this massive deployment, unlike earlier mobile money solutions built around smartphones, the personal biometrics (eye scan, fingerprints) were used to verify the beneficiary.
The question then becomes; Will an electronic payment system (global or local) built on Distributed Ledger Technology (DLT), ie the Blockchain, necessarily require smartphones in order to be efficient and effective in its diffusion and adoption by end-users, especially those in the low-wage earning demographic ?  What is the best role for the smartphone is this ecosystem ?
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Dear colleague,
Please refer to these papers....
I hope they help.
regards
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This afternoon I was (almost) impeded from paying cash at a supermarket in Belgium with the argument that the use of cash might cause transmission of coronavirus !? Incidentally they used no-touch cash machines and cashiers did not wear any face masks!
I checked literature but I found no shred of evidence to support their claim. There are clear indications of bacterial contamination on currency, but I could not find any evidence for transmissible viral pathogens present on banknotes and coins. Anybody can help?
THANKS !
Please stay healthy !
Koen Van Waerebeek
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Several countries have taken concrete steps or announced their intentions to launch a CBDC. As a digital currency, a CBDC’s most obvious benefit is faster, cheaper, and more efficient payments, both domestically and cross-border. In addition, a CBDC also reduces costs of making physical money. Supported with the blockchain technology, a CBDC is more difficult to counterfeit than paper notes and coins. CBDC also makes it easier for government agencies to fight criminal activities such as tax evasion and bribery.
Turkey became one of the latest countries to declare the development of a CBDC. To be completed by the end of 2020 as part of the Annual Presidential Program, the pilot for the digital Lira includes the development of a software platform for instant payment.
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70% of central banks surveyed are engaged in some type of CBDC exploration - France, Singapore, China, Canada, Marshall Islands are some of the countries. Benefits include digital currency could provide a real time picture of economic activity in a country or region as well as provide more accurate and timely economic data for GDP estimates than are available today. Other benefits are fighting money laundering and corruption where the money trail is clearer.
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Hope you can assist me on my quest. I'm looking for research and analysis on crypto currency exchanges, preferred on security aspects.
For me, this is to have a more holistic view on crypto exchanges and just a general interest to have more "data" on exchanges.
So if you know any research papers, company analysis etc., please share our links.
Have a great day!
Kristoffer
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Most derivative trading happens on BitMex.
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I am having a case study about impact of currency risk on financial performance of company X,I used the regression analysis to consider the impact of change in movements of currency on the profit margin with a total of 5040 observations, Do I need more interviews and the use of survey to get more respondents or regression is sufficient?
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Hello Elisabeth,
The reason that Kelvyn Jones has asked the question about your data collection method/design has to do with several things, the most important of which is, are the observations independent? If the 5040 data points are a time series from one entity (here, "company X"), then the scores are almost assuredly not independent and ordinary regression would not be a suitable analytic method. Perhaps something like an ARIMA model (auto-regressive integrated moving average) would be a better choice.
Good luck with your work.
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i'm currently working on currency misalignment , i have 3 variables the productivity differential and the NFA, as independent variables and REER as dependent variable, but my REER is unfortunately stationary I(0) the other are I(1), how can i run a cointegration or find a long run. By the way i used a DOLS despite having a I(0), and the misalignment results was following the literature for some countries and not following for the others, i'm working on 32 countries
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If the dependent variable is I(0) it cannot cointegrate with the independent variables. Cointegration means that a linear combination of variables have a reduced order of integration. Since you cannot have negative orders of integration, you cannot reduce the order of integration of an I(0) variable. If all variables are I(0) there is no reason to apply cointegration methods. Standard regression and notions of correlation with standard critical values for hypothesis testing should be valid. If some of the independent variables are I(1) you might apply a cointegration test to these variables to see if they cointegrate. If they do, a regression of the I(0) dependent variable on the independent variables will be a balanced regression in the sense that both left and right hand sides of the equation are I(0) and standard regression can be applied. The ARDL method strictly assumes that the dependent variable is I(1) and only the regressors can be either I(1) or I(0). The Johansen method would normally only be used with I(1) variables because if you include I(0) variables it will likely find a separate cointegrating equation for each of those variables.
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What can explain an increase in Outward FDI when home currency is weaker as compared to the host currency?
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You might like to check my own contribution, "Real Exchange Rate Risk, Expectations, and the Level of Direct Investment," Review of Economics and Statistics 67, May 1985, which directly addresses your question, and then for overviews see Blonigen, Bruce A., “A Review of the Empirical Literature on FDI Determinants.” Atlantic Economic Journal 33, December 2005, and Blonigen, Bruce A., and Jeremy Piger, “Determinants of Foreign Direct Investment,” Canadian Journal of Economics 47, August 2014.
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Hello,
I conducted a survey on mobile wallets and digital currencies in order to see what are people's opinions on the two technologies. One of my initial questions is "do you use any of the following: mobile wallet // digital currency" and responders could either pick one of the options or both. When I coded it, I created a column for each DV with 0: yes 1:no. I am looking at usefulness and other characteristics that I test with the next questions. Now I am wondering if I should run a linear regression analysis or a logistic regression? Thank you
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Hello Lia,
If the purpose of your research is to identify variables that may help distinguish persons who do vs. persons who don't use the specific technology (e.g., digital currency), then logistic regression is likely the better choice of the two methods you suggested.
Good luck with your work.
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We have a recommendation system based on emotion recognition and we have doubts about which algorithm we have to use. according to our currency search, we have found some classifiers such as ROI for detecting facial areas and 3NN MLP for emotion classify process.
Since we are new in this ML we really need help and advice for this topic.
Thank you.
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There is a possibility that you develop your own algorithm. What do you need for it?
* sufficiently large database of annotated facial expressions
* when you have none, you can build your own from a video recording of people changing facial expressions
* you will extract features, positions of special points at the face -- this you know how to do better than me
* you use AI and ML techniques to distill changes in features that correspond with given emotional states
* you can go for static evaluation of features
* or you can go to dynamic evaluation
It all sounds like a really interesting project. What I can recommend to you is to learn how biosignals are processed using complex systems and AI & ML techniques. It can give you a big kick in hoe to proceed in your case.
All the best :-)
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I'm trying to find out what empirical methods are the most appropriate to test cryptocurrencies and how they meet the properties of traditional currency. I would appreciate any recommendation on scientific literature or any comment.
Thank you in advance!
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Thanks. Interesting question and good answers.
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Note that this paper uses the standard notation for exchange rates, for example EURUSD 1.1 means “$1.1 for 1 euro”
a. Calculate to 4 decimal place the new exchange rate after a 2% increase in the value of the dollar given an exchange rate of EURUSD 1.1.
b. Given the following exchange rate, calculate the GBPEUR rate to 4 decimal places. EURUSD 1.1043 GBPUSD 1.2970
GBPEUR ?
c. Explain the relationship between your answer to part b) above and triangular arbitrage.
Question 2
Consider the following data: Date Exchange rate January 2017 EURUSD 1.100 December 2017 EURUSD 1.144 Take the US dollar as the home currency a. According to Purchasing Power Parity which currency area should have had the higher rate of inflation in 2017 and by how much? b. If inflation in the US were 3% higher than in the euro area, calculate the change in the real value of the What are the implications of this change? c. What are the implications of a change in the real exchange rate of a currency? d. Explain why you would expect interest rates in the US to be higher than in the euro e. Explain why you would expect there to be no difference in the interest rates of government bonds of any two countries in the euro area and also explain why in practice there are
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التالية
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Dear Bart, could I have the full project, I am also working on analysis of currency risk which caused by Brexit in certain company.
Could I have some suggestions/advices from you
Thanks
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Currectly define which currency exposure.
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Cryptocurrencies: how, when and why. The world is racing towards global currencies: opinions and comments.
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Quan Hoang Nguyen Central banks have a couple of policies at their disposal, such as setting interest rates, re-lending, re-discount, open market operations and credit policy. If citizens are using cryptocurrencies instead of national money those policies will not work as intended. In other words, central banks (and governments) are losing power.
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Central banks enjoy significant ‘franchise value’ through their monopoly to print money. Thus some researchers state that currency at the central bank plays a financial role very similar to capital.
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Not really, many factor are involved. The presence of global predictors are major drivers. The currency is useless without that main predictors (see International fisher effect transmission mechanism).
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I have downloaded time series data from the IMF-IFS website for 31 different countries. The time series are about GDP, constant prices, national currency (yearly); lending interest rate (monthly); exchange rate (monthly); import/export (yearly) and inflation rate (yearly).
I summarize these data into five variables, which I then input into a Self-Organizing Map. The aim would be to find clusters of homogeneous countries that are suitable for a monetary union.
For the GDP and interest rate, the variable is constructed as follows: I apply Hodrick-Prescott filter on the time series and extract only the cyclical components. I then compute cross correlation between the cyclical components of one country and a reference (in my case, the US).
I would like to know if it is necessary to check for stationarity of the time series. I am quite confused about it since I have not really taken a course about time series yet. But my professor told me that when dealing with time series, I should make sure they are stationary (even if in this case the analysis is just statistical, I am not building any auto-regressive model).
Performing ADF test on GDP and interest rate time series yields a large p-value. So I guess that means they are not stationary. But does it make sense to make them stationary if I have then to extract only their cyclical components? And, again, does it make sense to perform stationarity test on the cyclical components series itself?
I am sorry for the confused question.
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What are you trying to do?
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Although blockchain technology originally devised for the digital currency, different potential uses cases are discussed in the tech communities. Blockchain can be defined also as a new filing system for digital information, which stores data in an encrypted, distributed format.
Potential use case list includes cryptocurrency, digital identity, voting, notary,  smart contracts, IoT, insurance, healthcare etc. 
Blockchain and Machine Learning (ML) are two big areas highly discussed and used over the last couple of years, but not so much together.
How machine learning and blockchain technology can be combined? What are the potential use cases of ML and blockchain combination?
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Sadly, most technology, like 3d printing or AI is often thrown at the most simple problems, like marketing for AI or printing toys for 3d printers. Blockchain is a ledger and great for tracking money. But it can also track other things that require a lot of effort to track. 3d printers took a while to be used for the benefit of society. do data scientists really want to build a better marketing algorithm to sell 5% for widgets? I think we would rather use our time to find the next combination of chemicals/items that would solve world problems. Could we find the optimal road layout to reduce wrecks or increase the durability of roads to save us billions. Could we use AI to re-plan food distribution and farming to reduce chemical and fertilizer pollution and regrow our forest and grass lands without overgrazing. Is there an optimal population per square mile? What amount of properly cultivated land could sustain a family without environment harm? Could we find these answer if we had more data, yes we could. It wasn't until we saw the change in yellow stone with the introduction of predators and the reduction of overgrazing of herd animals did we realize we have been mismanaging nature. What other areas of our life could we track with blockchain then analyze with AI to make ground breaking discoveries?
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In the face of increasingly frequent financial crises and speculative bubbles, economists are looking for solutions aimed at healing or constructing a new monetary system. And although their concepts differ in their details, they are all in line with the idea that the issue of money and its benefits belong to the whole of society. Can decentralized digital currencies help solve this problem? Who really and why invest in virtual currency?
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Transactions in virtual currency may be cheaper, faster and more secure. Hence, it is better option for investment.
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Is the drive for the ECOWAS common currency the panacea to the economic challenges facing Sub-Saharan Africa? Why?
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Dennis Atsu Dake , just a small write up I did for a different question, given that the Eco, the ECOWAS currency is now almost on the way.
The Ecowas currency which is envisaged to be a wider combination of the CFA and the rest of the West Africa member countries in the Ecowas zone will start to be operational in 2020. Having been on the cards form many years with a lot of false starts and delays amid wide ranging debates, the currency did not only suffer the lack of political will from member countries but was also mainly stalled due to the failure of most of the countries to meet the tight economic convergence criteria.
The key convergence criteria were designed to ensure that countries do not carry along their deep seated structural economic risks into the new currency. It meant therefore that the countries had to show a consistency in good economic management to be evidenced by, for example, consistently achieving an inflation rate below 10% for a sustained period. For the whole decade from 2000 to 2011, there were the rare occasions that only Gambia, (a rather low weight country in the basket,) and occasionally Ghana met that criteria alone. Another key metric to meet was the fiscal deficit targeted to be not more than 4% of GDP, this was generally met by the smaller countries while the bigger weight country, Nigeria generally was missing this target. In recent years, there has been sporadic pockets of success while there is an equal measure as the member countries have struggled to meet such targeted criteria as import cover, inflation, fiscal deficit etc save for actual GDP growth. What this means is that the Gvts want to go ahead without much regard to the convergence criteria[or they will relax the targets] if they are to meet the six month target for the launch- and this can be a recipe for disaster.
From an economic technical perspective, it would appear that the proponents of the Eco currency would need to demonstrate that the countries’ economies are ready for convergence and will not carry some of the risks that they face individually into the ring. Some critics also note that studies of the impact and potential outcome scenarios are yet to be even started. So, while the good currency has conceptually been supported from the political grandstand, it will have to do a lot of convincing to the technocrats including the central banks. While all these are not at all impossible to achieve, the potential amount of work that needs to be cleared simply puts to question the possibility of achieving the six months timeline that the Ecowas political leaders have announced.
Talking of the potential ground clearance issues, the introduction of the currency will also need to undergo different legislative processes in each Ecowas jurisdiction, and for a change of legal tender to happen, it will still be important to see what processes each country will commit to deliver. If there is need for parliamentary approvals, then that would imply some amount of delays. It is feasible that each of the countries would need to carry out a wider consultative process, which may include in some cases a constitutional vote/process of some sort.
Some institutional convergence process will also have to be completed ahead of the launch, or at least a framework agreed on how such institutions as the central banks will integrate immediately or over an agreed timeframe how they will work around. Will Monetary Policy and reserves management be centralised or be autonomous, and how does the Francophone CFA zone countries smoothly de-engage the French connection, both politically and from a process perspective [if this ever happensJ]
Given the wold’s experience of the existing currencies of the same nature, we expect a lot of operational, legislative, and technical economic work to be done to reach a decent level of preparedness before the launch of this currency. As all this could take a long-time, governments in Ecowas could actually consider launching the Eco as a second legal tender or to run it on a parallel basis, as a reference/accounting only currency unit for a while.
On the whole, in the wider context it makes sense for the countries that control more than a 1/3rd of Africa’s economy to come up with a currency that even further strengthens the control on their economies and also helps support the Continental Free Trade Agreements. It can be done, must done quickly enough but with a balancing measure of diligence. While we do not say slowness equals carefulness, we think achieving the new currency in six months could risk compromising appropriateness in different angles.
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I wasn't able to find a clear answer for that question, about Financial Account, as definition of IMF, and its balance.
Is there any effect of internationalization of a foreign currency (such as USD, GBP, or RMB) on the financial account balance of a certain country, like Vietnam?
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The global economic system is simply a combination of multiple political economies, all seeking control to make good on promises made to the voting population at large. Currency manipulation has become the atomic bomb of the 21st century and has destroyed /capped the lives of innocent bystanders, there by creating a human rights epidemic. Are there solutions available to the people?
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If using a gold standard, how does the economy adjust for dislocations of capital, and currency flight? Also, does a gold standard negate monetary policy as a tool vs. a weapon?
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Some economists say that it is enough for China to open up US Treasury bonds on the open market. Then a sharp drop in the US dollar to other currencies would trigger a new global financial crisis. But does the como depend on this to trigger such a global crisis? For now, no, but will not there be a future big investment bank that wants to earn in this or a similar surgery, we do not know.
Please, answer, comments. I invite you to the discussion.
Dear Friends and Colleagues of RG
The issues of risk management in the context of determinants of the global financial crisis, globalization processes, technological progress and other factors I described in the publications:
I invite you to discussion and cooperation.
Best wishes
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Capitalism - When the 25% wealthiest in the world still unhappy with their possession.
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