Creating Monetary Measurement Unit (MMU) as the Global Universal Measure for Hedging against Inflation and Currency Risk

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Aleksandar Manić
Zoran Grubišić

Abstract

The paper presents an indicator created to reflect the long-term stability in the trend of real growth of the global economy, based on the current market data through a basket of currencies with a government bond yields based premium. The results suggest that the indicator is adequate to be considered as a benchmark for widespread indexation, with a potential hedging for diverse types of contracts and assets against price level volatility and currency risk on an international scale.

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References

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