Dollar Fluctuations and the Middle East Markets Dissertation or Thesis by eddievedder

Looks at the influences of the fluctuations in U.S. dollar value on the markets of developing countries in the Middle East in 2007.
# 145636 | 15,130 words | 49 sources | APA | 2010 | US
Published on Nov 20, 2010 in Economics (International) , Economics (Macro) , Economics (National)

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This paper explains that the confusing relationship of the U.S. dollar value on the markets of developing countries is compounded by the interpersonal, micro-economic business climate and culture of the Middle East countries. Next, the author presents an extensive analysis of the principles of exchange rate movements, the optimization of currency and the exchange rate policies of emerging market economies. The paper underscores the economic situation in the Middle East especially the influence of oil revenues. The paper includes several tables, figures and formulas.

Table of Contents:
Statement of the Problem
Developing a Twenty-First-Century Middle Eastern Financial Services Agenda
Think Global
Act Regional
Look Local
The Opportunity for Middle Eastern Competition
Exchange Rate Regime Choice: The Debate
The Case for Hard Currency Strategies for Emerging Market Economies
A Fixed Peg as Anchor for Monetary Policy
Literature Review
Real Exchange Rate Movements: An Interpretation
The Relevance of the Optimum Currency Area Approach for Exchange Rate Policies in Emerging Market Economies
Purpose and Aim of the Study
Research Objectives
Asset Management
The Required Magnitude of Dollar Depreciation
Will There be a Dollar Crisis?
Research Methodology
Distribution among Offshore Centers as in 2006
The Challenges of Globalization
Strategic Rents: Foreign Aid and Arms Transfers
Oil Revenues

From the Paper:

"The initial setting of the exchange rate is, however, an extremely difficult task. It appears that in Poland and the former Czechoslovakia policymakers did err as far as devaluation was concerned: the initial undervaluation of the exchange rate was more than was warranted by the (expected) jump in the price level due to the liberalization of prices and the sharp curtailment of subsidies. It is my judgment that in no case was the initial error so large that the peg had to be abandoned on this account later on. Provided that the initial mistake in setting the exchange rate is not "too large", one can expect that, over time, the domestic economy will adjust."

Sample of Sources Used:

  • Hochreiter, Eduard. 2005. "Is a New International Monetary Order Needed?" in Gary Bertsch and Chrism Saunders, eds., East-West Economic Relations in the 1990s. Pp. 209-21. London: Macmillan.
  • Branson, William, and Jorge Braga de Macedo. 2006. "Macroeconomic Policy in Central Europe." CEPR Working Paper No. 1195. London: Centre for Economic Policy Research, August.
  • Guitian, Manuel. 2007. "The Choice of an Exchange Rate Regime," in Richard D. Barth and Chorng-Huey Wong, eds., Approaches to Exchange Rate Policy: Choices for Developing and Transition Economies. Pp. 13-36. Washington, D.C.: International Monetary Fund.
  • Bruno, Michael, Stanley Fischer, Elhanan Helpman and Nissan Liviatan, eds. 2006. Lessons of Economic Stabilization and Its Aftermath. Cambridge: MIT Press.
  • Goldberg, Linda, Barry Ickes, Randi Ryterman. 2006. "Departures from the Ruble Zone: The Implications of Adopting Independent Currencies." World Economy 17( 3): 293-322.

Cite this Dissertation or Thesis:

APA Format

Dollar Fluctuations and the Middle East Markets (2010, November 20) Retrieved May 23, 2022, from

MLA Format

"Dollar Fluctuations and the Middle East Markets" 20 November 2010. Web. 23 May. 2022. <>