The Present Value Model (PVM) – in which current security prices depend upon the present value of future discounted dividends, where the discount rate is equivalent to the required rate of return – is one of the long-standing principles of Finance Theory. The objective of this work is to...

This paper aims to test the current account approach for UK and USA data. In order to do this it's used Johansen, S. and A. R. Swensen (1999) methodology to test exactly a restriction implied by a rational expectation model. All the parameters are estimated directly from the econometric model...

The study proposes an alternative theory for determining the exchange rate with a basis on the currency value concept formulated by Rudolf Hilferding. The currency value is defined as the ratio between the Gross Domestic Product (GDP) and the number of working hours spent to produce it. The...