Empirical Relationship between the Price of Gold and Three Other Variables

We could not find a relationship between the overall price level and the interest rate and the exchange rate, but I was more interested in finding the possible relationship between the price of gold and these variables. In many economies around the world, gold has done a lot of research as inflation hedge, and the result strongly supports it weakly support it. If money is an inflation hedge, there may be a relationship between money and these variables. In this article we try to explore empirical relationships between gold prices and other four variables that may be relevant.

At the empirical level, the economic survey did not reach a specific relationship between the two variables. This problem is mainly embedded in a number of variables that affect this type of relationship and can not be controlled because it is impossible to quantify the data or data. These variables include technical and communication revolutionary variables that promote the flow of people and things around the world. Other factors include protectionist policies towards the flow of trade and immigration

To evaluate the empirical relationship between key variables (debt and economic growth), this study widely used econometric model. Other variables are included in the modeling stage, but are not the basis of the central purpose of the analyzed relationship, but are considered as related explanatory variables of the dependent variable. The causal effect between variables is usually indirect, accompanied by an important element of the feedback effect and indicates an intrinsic element. To illustrate this, we used dynamic time series analysis, the vector autoregressive framework. The motivation to use this framework is that it allows for significant insight into the role of public debt as well as economic growth, including private and public investment.