February 2011
A survey on the requirements of applying the framework of inflation targeting in Iran's economy
Harmful impacts of high chronic inflation on economy have always required the governors and monetary officials of countries to eliminate the problem and its negative economic consequences. Different methods and monetary systems have been applied to serve the purpose, namely various kinds of exchange rate targeting and monetary variables improvement rate targeting. Studies have shown that in order for...
February 2011
An evaluation of exchange rate models by carry trade
We evaluate the effectiveness of economic fundamentals in enhancing profit of carry trades. We simulate carry trades in Japanese yen and Swiss franc against six target currencies based on forecasts of exchange rate models of economic fundamentals. The performance results are compared against those of the benchmark random walk and AR (1) models. We find that carry trades perform better in risk-adjusted returns and...
February 2011
Doing business with China: Is China keeping its legal WTO obligations?
Is China keeping its legal world trade organization (WTO) obligations? On December 11, 2001, China became the 143rd member of the WTO after 15 years of negotiations. The accession package approved in Qatar for the People's Republic of China includes commitments on transparency and predictability, tariffs, trading rights and distributions, service agreements, TRIPS, import licensing importation and...
February 2011
Nature and association of public and private investment: Public policy implications for South Africa
South Africa has a low investment-to-GDP ratio compared to other developing countries. The share of government investment in the total investment has also been declining. In this context, the paper uses quarterly data from 1960 to 2005 to analyse the nature and relationship between public and private investment in South Africa. The findings of the study have strong policy implications and indicate that...
February 2011
The Pension Reform Act (PRA) 2004 and retirement planning in Nigeria
The surest way most old people who have retired from active service solve their financial and other problems in Nigeria is mostly through their pension packets. It is however sadly observed that these monies are usually unreachable to them as at when due because of the manner in which government and other employers handle pension issues. Because of this, some persons who are due for retirement manipulate and...
February 2011
On multicollinearity in nonlinear econometric models with mis-specified error terms in large samples.
The Cobb-Douglas model is a common occurrence in econometrics and other areas of research. Earlier results show that the consequence is more serious when a multiplicative error plagued data set is fitted with an additive error based model than vice-versa. In this study, involving large samples, we investigate the impact of multicollinearity in nonlinear econometric models with mis-specified error terms. .As...
February 2011
Does the Zimbabwean exchange rate follow a random walk: January 2000 -December 2008?
The Purchasing Power Parity [PPP] theory says the price of internationally traded goods should roughly be the same anywhere in the world once the price is expressed in a common price. The question however is that does this theory hold in an economy that has experienced long period of high inflation. In this study, monthly data from January 2000 to December 2008 was used. Unit root tests were applied to the...
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