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

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.