Synchronization analysis between exchange rates on the basis of purchasing power parity using the Hilbert transform

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Tác giả: Makoto Muto, Yoshitaka Saiki

Ngôn ngữ: eng

Ký hiệu phân loại: 332.456 Exchange rates

Thông tin xuất bản: 2020

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Bộ sưu tập: Metadata

ID: 165406

Comment: 38 pages, 11 figuresSynchronization is a phenomenon in which a pair of fluctuations adjust their rhythms when interacting with each other. We measure the degree of synchronization between the U.S. dollar (USD) and euro exchange rates and between the USD and Japanese yen exchange rates on the basis of purchasing power parity (PPP) over time. We employ a method of synchronization analysis using the Hilbert transform, which is common in the field of nonlinear science. We find that the degree of synchronization is high most of the time, suggesting the establishment of PPP. The degree of synchronization does not remain high across periods with economic events with asymmetric effects, such as the U.S. real estate bubble.
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