BEARdocs

The utility of the passing time and measurement of the purchasing power of currencies in the flexible-exchange-rate system.

DSpace/Manakin Repository

Show simple item record

dc.contributor.advisor Gardner, H. Stephen
dc.contributor.author Seka, Gilles-Eric Kotchi.
dc.contributor.other Baylor University. Dept. of Economics. en
dc.date.copyright 2008-08
dc.identifier.uri http://hdl.handle.net/2104/5252
dc.description.abstract In economics, it is not the quantity that matters the most; it is the amount of utility. The purchasing power of a currency is not merely the volume of goods the money can obtain, but the amount of utility it can command. Primarily, money exchanges for some units of time spent laboring. As such, the ratio of the utility of time to the money wage should measure the purchasing power of the currency. This marginal utility of the time is the first derivative of the utility production function, derived from the compound interest equation, with respect to time. It follows that the purchasing power of the currency is dependent on both the rate of interest and the wage rate. This measure of purchasing power allows computation of a purchasing-power-parity exchange rate that truly reflects the fundamentals of the economy. en
dc.rights Baylor University theses are protected by copyright. They may be viewed from this source for any purpose, but reproduction or distribution in any format is prohibited without written permission. Contact librarywebmaster@baylor.edu for inquiries about permission. en
dc.subject Foreign exchange rates -- Econometric models. en
dc.subject Utility theory. en
dc.subject Purchasing power parity -- Econometric models. en
dc.subject Purchasing power. en
dc.subject Time -- Economic aspects. en
dc.title The utility of the passing time and measurement of the purchasing power of currencies in the flexible-exchange-rate system. en
dc.type Thesis en
dc.description.degree M.S. Eco. en
dc.rights.accessrights Worldwide access en
dc.contributor.department Economics. en


Files in this item

This item appears in the following Collection(s)

Show simple item record

Search BEARdocs


Advanced Search

Browse

My Account

Statistics