Erwin Bramana KARNADİ, Putu Rusta ADİJAYA

110148

Redenomination: Why is It Effective in One Country but Not in Another?

Redenomination: Why is It Effective in One Country but Not in Another?

The real impact of redenomination is still an on-going debate in the academic world. Redenomination is process decreasing values of a currency without changing its real currency exchange rate. In this research, we are using a panel data set obtained from The World Bank to estimate the impact of redenomination on macroeconomic variables such as inflation rate, real GDP per capita and real currency exchange rate. We decided to use fixed effects estimators to take into account the impact of specific characteristics of each country. We concluded that redenomination can significantly decrease estimated inflation rate and increase estimated real GDP per capita. We also concluded that redenomination has no significant impact on estimated real currency exchange rate. However, the effectiveness of redenomination depends on the country’s government effectiveness and political stability which will improve country’s economic conditions and their competitiveness.

Keywords:

Fixed Effects Estimators, Redenomination Government Effectiveness, Political Stability,

International Journal of Economics and Financial Issues-Cover

Başlangıç: 2011
Yayıncı: İlhan ÖZTÜRK

Arşiv

Sayıdaki Diğer Makaleler

Analysis Z-score to Predict Bankruptcy in Banks Listed in Indonesia Stock Exchange

Muammar Khaddafi, - Falahuddin, Mohd. Heikal, Ayu Nandari

Impact of Audit Committee on the Association Between Financial Reporting Quality and Shareholder Value

Ahmad Ibrahim Karajeh, Mohd Yussoff B. Ibrahim

Political Connections and Debt Access: The Case of Tunisian Firms

Fayrouz BENCHEİKH, Neila Boulila TAKTAK

Analysis of Factors Affecting the Adoption and Use of Environmental Management Accounting to Provide a Conceptual Model

Zohre KARİMİ, Mohsen DASTGİR, Mehdi Arab SALEH

The Effect of Ownership Composition on Stock's Liquidity: Evidence from Weak Corporate Governance Setting

Majd ISKANDRANİ, Asma'a AL-AMAREH

How People Apply Mental Accounting Philosophy to Investment Risk?

Juan MASCAREÑAS, Fangyuan YAN

Economic Impact on Financial Ratios of Food Industry at Istanbul Stock Exchange Listed Firms

Metin ATMACA, Engin DEMİREL

The Effect of Oil Shocks on Foreign Trade under Inflation and Exchange Rate Targeting Policies (In the Form of a Dynamic Stochastic General Equilibrium Model for Iran)

Mehdi Behrad-Amin, Gholamreza Zamanian, Marzie Esfandiari

Military Expenditure and Economic Growth in South Asian Countries: Empirical Evidences

Impact of Non-Oil Export on Non-Oil Economic Growth in Saudi Arabia

Mohammed A. Aljebrin