This paper provides a methodology for constructing synthetic money, which is defined as an optimal currency basket that mimics a single currency. Empirical evidence is provided by constructing a synthetic dollar from a currency basket comprised of six currencies that excludes the U.S. dollar. We believe that synthetic money has a number of practical applications, including currency pegging operations by nations, denomination of global bond issues by large firms and countries, and analyses of currency movements over time by interested parties.
Язык оригиналаанглийский
Страницы (с-по)161–168
ЖурналInternational Review of Economics and Finance
Том16
Номер выпуска2
СостояниеОпубликовано - 2007

ID: 5019989