Synthetic Money Chapter uri icon

abstract

  • In this paper we reviewed HKS’s currency invariance and optimal currency basket concepts, illustrated their application to currency data, and extended their analyses to the construction of synthetic money. To demonstrate the notion of synthetic money, we empirically derived a synthetic dollar using six major currencies (excluding the dollar). The results showed that our synthetic dollar is highly correlated with the U.S. dollar and could be used as a substitute currency.

author list (cited authors)

  • Hovanov, N. V., Kolari, J. W., & Sokolov, M. V.

citation count

  • 1

editor list (cited editors)

  • De Gijsel, P., & Schenk, H.

Book Title

  • Multidisciplinary Economics

publication date

  • January 2005