News Column

Findings from University of Stellenbosch Provides New Data about Emerging Markets (Commodity prices and exchange rate volatility: Lessons from South...

August 16, 2014



Findings from University of Stellenbosch Provides New Data about Emerging Markets (Commodity prices and exchange rate volatility: Lessons from South Africa's capital account liberalization)

By a News Reporter-Staff News Editor at Investment Weekly News -- Current study results on Emerging Markets have been published. According to news originating from Stellenbosch, South Africa, by VerticalNews correspondents, research stated, "We examine the relationship between the South African Rand and the gold price volatility using monthly data for the period 1979-2010."

Our news journalists obtained a quote from the research from the University of Stellenbosch, "Our main finding is that prior to capital account liberalization the causality runs from the South African Rand to the gold price volatility but the causality runs the other way around for the post-liberalization period."

According to the news editors, the research concluded: "This finding suggests that gold price volatility plays a key role in explaining both the excessive exchange rate volatility and current disproportionate share of speculative (short-run) inflows that South Africa has been coping with since the opening up of its capital account. ."

For more information on this research see: Commodity prices and exchange rate volatility: Lessons from South Africa's capital account liberalization. Emerging Markets Review, 2014;19():96-105. Emerging Markets Review can be contacted at: Elsevier Science Bv, PO Box 211, 1000 Ae Amsterdam, Netherlands. (Elsevier - www.elsevier.com; Emerging Markets Review - www.elsevier.com/wps/product/cws_home/620356)

The news correspondents report that additional information may be obtained from R. Arezki, University of Stellenbosch, ZA-7600 Stellenbosch, South Africa. Additional authors for this research include E. Dumitrescu, A. Freytag and M. Quintyn.

Keywords for this news article include: Stellenbosch, South Africa, Emerging Markets

Our reports deliver fact-based news of research and discoveries from around the world. Copyright 2014, NewsRx LLC


For more stories on investments and markets, please see HispanicBusiness' Finance Channel



Source: Investment Weekly News


Story Tools






HispanicBusiness.com Facebook Linkedin Twitter RSS Feed Email Alerts & Newsletters