Research Handbook of Investing in the Triple Bottom Line
Show Less

Research Handbook of Investing in the Triple Bottom Line

Finance, Society and the Environment

Edited by Sabri Boubaker, Douglas Cumming and Duc K. Nguyen

The triple bottom line is an accounting framework with social, environmental and financial factors. This Handbook examines the nexus between these areas by scrutinising aspects of socially responsible investment, finance and sustainable development, corporate socially responsible banking firms, the stock returns of sustainable firms, green bonds and sustainable financial instruments.
Buy Book in Print
Show Summary Details
You do not have access to this content

chapter 4: Exchange rate instability: relative volatility, risk and adjustment speed

Mohamed Ariff and Alireza Zarei

Abstract

Researchers focusing on how currency values change and are managed have yet to show how relative measures could help track instability and also help rank countries by relative measures rather than measures based on each currency. The aim of this chapter is to provide ideas towards this end to measure currency instability and then to rank currency risk. We also test how these measures stand up. Exchange rate volatility has been at the center of several financial crises normally leading to economic declines, which usually also precipitate financial instability. Much has been written about how countries manage their exchange rates in order to promote economic growth, especially sustainable trade, by designing proper exchange rate regimes. Exchange rate stability has been a pillar within economic policy circles ever since the 1946 Bretton Woods arrangement, which replaced the US$ and gold standard with free-floating or other currency management regimes, came unstuck in 1973. How good currency stability is achieved by a given country could be measured using four concepts: relative volatility; interquartile range; degree of cointegration; and speed of adjustment to the benchmark currencies of peers. We explore these ideas in relation to the experiences of 14 countries over some 26 years.

You are not authenticated to view the full text of this chapter or article.

Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.

Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.

Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.


Further information

or login to access all content.