Does Gold Act as an Instrument to hedge Against Inflation Between the Years of 1980-2010 in Six Developed Countries?
The aim of this research is to examine the role of gold as an instrument to hedge against inflation between 1980-2010 of four time frames, which are monthly, quarterly, semi-annually, and annually in six developed countries, which are Canada, Germany, Japan, Switzerland, UK, and US. This research re...
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| Main Authors: | , |
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| Format: | Theses and Dissertations NonPeerReviewed |
| Published: |
[Yogyakarta] : Universitas Gadjah Mada
2013
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| Subjects: | |
| Online Access: | https://repository.ugm.ac.id/119103/ http://etd.ugm.ac.id/index.php?mod=penelitian_detail&sub=PenelitianDetail&act=view&typ=html&buku_id=59094 |
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| Institution: | Universitas Gadjah Mada |
| Summary: | The aim of this research is to examine the role of gold as an instrument to
hedge against inflation between 1980-2010 of four time frames, which are monthly,
quarterly, semi-annually, and annually in six developed countries, which are Canada,
Germany, Japan, Switzerland, UK, and US. This research replicates prior research
done by Chua and Woodward (1982). The author uses multiple regression one tailed
t-test with 95 percent confidence level where gold return act as dependent variable
and both expected and unexpected inflation rate act as independent variable. Gold
would be able as hedging property if it is uncorrelated or positively correlated with
inflation rate which would be reflected by the slope coefficient.
The result of this research shows that gold is hedge against unexpected
inflation in four time frames of six developed countries since the slope coefficient of
those time frames are uncorrelated with gold return. On the other hand, gold fails in
playing its role as hedge against expected inflation in monthly data of US |
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