Fundamental theories of currency valuation: A study testing on relevancy between political economy and the Euro exchange rate variation

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Volume Title

School of Business | Bachelor's thesis

Date

2020

Department

Major/Subject

Mcode

Degree programme

(Mikkeli) Bachelor’s Program in International Business

Language

en

Pages

65

Series

Abstract

This thesis is a literature about currency regimes and theoretical hypotheses about how currency is valuated, mainly focused on the major global currencies, uses the architecting progress of the Euro to examine inspected theories. Currencies under this paper’s perspective is not only an economic component but also an ultimate consequence of distinguishable socio-political occurrences. Instead of specifying models and techniques of macroeconomics to weigh exchange rate, it concentrates on the critical of interdisciplinary approaches of a comprehensive mix of economic, socio-political, and environmental perspectives. The Euro – a new currency tested on the common currency area provision, is examined to check how fundamental architectures affect a currency’s exchange rate.

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Thesis advisor

Zieba, Marta

Keywords

currency, exchange rate, the Euro, G10 currencies, currency regime

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