LCcarG715_en.pdf
... seen as the outcome of the interaction of flow supplies and demands. Alternatively, it may be determined like an asset in the sense that “its present value depends on expected future returns to holding assets valued in home or foreign money” (Eatwell and Taylor, 2000, p. 62). In the first case, the ...
... seen as the outcome of the interaction of flow supplies and demands. Alternatively, it may be determined like an asset in the sense that “its present value depends on expected future returns to holding assets valued in home or foreign money” (Eatwell and Taylor, 2000, p. 62). In the first case, the ...
exchange rate pass-through in india
... exchange rate movements has, of late, assumed importance in open economy macroeconomic analysis of developing countries. Theoretically, devaluation of home currency leads to an increase in import prices in terms of home currency. Following home country currency depreciation, price of imports in home ...
... exchange rate movements has, of late, assumed importance in open economy macroeconomic analysis of developing countries. Theoretically, devaluation of home currency leads to an increase in import prices in terms of home currency. Following home country currency depreciation, price of imports in home ...
Introduction - Lahore School of Economics
... model. Since most interest rates move in more or less the same direction, researchers are best restricted to limited rates of return (Calza et al., 2001). In the case of developing countries, where the financial market (particularly the long-term bond and equity markets) is not fully developed, the ...
... model. Since most interest rates move in more or less the same direction, researchers are best restricted to limited rates of return (Calza et al., 2001). In the case of developing countries, where the financial market (particularly the long-term bond and equity markets) is not fully developed, the ...
EMP – A Note on Empiricism and Foreign Exchange Markets
... Huizinga (1987) found a tendency – albeit statistically insignificant – towards reversion to the mean. Abuaf and Jorion (1990), studying exchange rate data for six European Union countries plus Canada, Japan, Norway and Switzerland for the period from 1973 to 1987, and applying more sophisticated st ...
... Huizinga (1987) found a tendency – albeit statistically insignificant – towards reversion to the mean. Abuaf and Jorion (1990), studying exchange rate data for six European Union countries plus Canada, Japan, Norway and Switzerland for the period from 1973 to 1987, and applying more sophisticated st ...
The Bretton Woods International Monetary System
... The architects derived their views of an ideal international monetary arrangement from their perception of the performance of the pre-World War I classical gold standard and of the sequence of floating rates and gold exchange standard that characterized the interwar period. As background to the hist ...
... The architects derived their views of an ideal international monetary arrangement from their perception of the performance of the pre-World War I classical gold standard and of the sequence of floating rates and gold exchange standard that characterized the interwar period. As background to the hist ...
The Impact of Hedging on Firm Value
... impact of the use of currency derivatives on firm value for developed countries. In the United States case, Allayannis and Weston (2001) found a positive relation and a hedging premium of nearly 5% for the firms that use currency derivatives. Jin and Jorion (2004), studying the same country, but lim ...
... impact of the use of currency derivatives on firm value for developed countries. In the United States case, Allayannis and Weston (2001) found a positive relation and a hedging premium of nearly 5% for the firms that use currency derivatives. Jin and Jorion (2004), studying the same country, but lim ...
Table 2 - Bank of Namibia
... Recent studies have drawn attention to the fact that most time series data might exhibit non-stationary which is likely to result in ‘spurious regressions” and the concomitant incorrect statistical inferences. Though first differencing can be used to overcome this problem, potentially useful informa ...
... Recent studies have drawn attention to the fact that most time series data might exhibit non-stationary which is likely to result in ‘spurious regressions” and the concomitant incorrect statistical inferences. Though first differencing can be used to overcome this problem, potentially useful informa ...
Depreciation of the Russian rouble in 2014-2015 and its
... The present Bachelor’s thesis examines the impact of the devaluation of the Russian rouble in 2014 and 2015 on Finnish companies operating in the food and beverages and chemical industries. The objective of the thesis is to identify the indirect impact of the weakened rouble on the financial perform ...
... The present Bachelor’s thesis examines the impact of the devaluation of the Russian rouble in 2014 and 2015 on Finnish companies operating in the food and beverages and chemical industries. The objective of the thesis is to identify the indirect impact of the weakened rouble on the financial perform ...
The role of asymmetric information among investors in
... in addition to their public signal. Every period investors decide how much to invest in domestic bonds, foreign bonds, and their non-asset income. I assume that this non-asset income depends on exchange rates, thus creating some hedging demand in the foreign exchange market. Investors also make use ...
... in addition to their public signal. Every period investors decide how much to invest in domestic bonds, foreign bonds, and their non-asset income. I assume that this non-asset income depends on exchange rates, thus creating some hedging demand in the foreign exchange market. Investors also make use ...
Exchange-Rate Stabilization in Mid-1930s
... even if within a relatively narrow range. The dollar, though pegged to gold at $35 per ounce, was subject to change. A unilateral devaluation of the franc could bring foreign retaliation in the form of further changes in exchange rates or in commercial policy that would nullify part or all of the Fr ...
... even if within a relatively narrow range. The dollar, though pegged to gold at $35 per ounce, was subject to change. A unilateral devaluation of the franc could bring foreign retaliation in the form of further changes in exchange rates or in commercial policy that would nullify part or all of the Fr ...
Impact of the Euro adoption on the Economy of Latvia
... tuations of the euro and the US dollar are likely to occur also in the future, an inference can be made that the lats peg to the euro will completely eliminate lats fluctuations relative to euro, while Latvia's exporters to the countries of the US dollar bloc are likely to experience an 8.2% increa ...
... tuations of the euro and the US dollar are likely to occur also in the future, an inference can be made that the lats peg to the euro will completely eliminate lats fluctuations relative to euro, while Latvia's exporters to the countries of the US dollar bloc are likely to experience an 8.2% increa ...
Non deliverable forwards: 2013 and beyond
... Sobrun (2013), we examine partial data since April 2013, which raise the question of how much the growth through April reflected a search for yield. London surveys show that the NDF market grew faster than the forward market or the foreign exchange market as a whole from April 2008 to April 2013 (Ta ...
... Sobrun (2013), we examine partial data since April 2013, which raise the question of how much the growth through April reflected a search for yield. London surveys show that the NDF market grew faster than the forward market or the foreign exchange market as a whole from April 2008 to April 2013 (Ta ...
Determinants of Currency Risk Premiums
... As shown in Table 1A, when equation (2) is estimated using OLS the 15 estimated values of ψ s are consistently negative and greater than unity in absolute value. With two exceptions, all the estimates are significant at the 5 percent level. Frankel and Chinn (1991) note that OLS estimates can likely ...
... As shown in Table 1A, when equation (2) is estimated using OLS the 15 estimated values of ψ s are consistently negative and greater than unity in absolute value. With two exceptions, all the estimates are significant at the 5 percent level. Frankel and Chinn (1991) note that OLS estimates can likely ...
Trade Effect of a Single Currency in East Africa
... The East African monetary union that will include Burundi, Kenya, Rwanda, Tanzania and Uganda is one of the stages in the East African economic and political integration process. Kenya, Tanzania and Uganda have a long history of institutional and economic cooperation which fostered an environment wi ...
... The East African monetary union that will include Burundi, Kenya, Rwanda, Tanzania and Uganda is one of the stages in the East African economic and political integration process. Kenya, Tanzania and Uganda have a long history of institutional and economic cooperation which fostered an environment wi ...
A Guided Tour of the Market Microstructure Approach to
... of this structure. Firstly, one should note that since these markets by their nature are dislocated in several financial centers, practically no rules can be imposed on their functioning and the activity of their participants. This means that their organization is not the result of the decisions of ...
... of this structure. Firstly, one should note that since these markets by their nature are dislocated in several financial centers, practically no rules can be imposed on their functioning and the activity of their participants. This means that their organization is not the result of the decisions of ...
Exchange-Rate Determination: A Survey of
... both during the Bullionist Controversy in early nineteenth-century England and during earlier debates in mid-eighteenth-century Sweden. And Einzig (1970, pp. 145-146) traces PPP theory as far back as Spanish writers in the sixteenth and seventeenth centuries (see Officer, 1976a, for a recent review ...
... both during the Bullionist Controversy in early nineteenth-century England and during earlier debates in mid-eighteenth-century Sweden. And Einzig (1970, pp. 145-146) traces PPP theory as far back as Spanish writers in the sixteenth and seventeenth centuries (see Officer, 1976a, for a recent review ...
early warning indicators for developed countries - ECB
... apply BMA to a set of 30 macroeconomic and financial indicators selected on the basis of a literature review, given data availability. To account for the fact that early warning signals may come at different horizons, we consider time horizons varying from less than a year (‘late warning’) to up to ...
... apply BMA to a set of 30 macroeconomic and financial indicators selected on the basis of a literature review, given data availability. To account for the fact that early warning signals may come at different horizons, we consider time horizons varying from less than a year (‘late warning’) to up to ...
The Gold Standard, Bretton Woods and Other Monetary Regimes: A
... a contingent rule, or one with escape clauses that allow member countries to suspend parity (convertibility) temporarily, may be optimal.12 The rule constrains the government to adhere to the fixed exchange i-ate except in the case of a wellunderstood emergency, ~~‘lienit can suspend pal-it)’ (conve ...
... a contingent rule, or one with escape clauses that allow member countries to suspend parity (convertibility) temporarily, may be optimal.12 The rule constrains the government to adhere to the fixed exchange i-ate except in the case of a wellunderstood emergency, ~~‘lienit can suspend pal-it)’ (conve ...
Currency
A currency (from Middle English: curraunt, ""in circulation"", from Latin: currens, -entis) in the most specific use of the word refers to money in any form when in actual use or circulation as a medium of exchange, especially circulating banknotes and coins. A more general definition is that a currency is a system of money (monetary units) in common use, especially in a nation. Under this definition, British pounds, U.S. dollars, and European euros are examples of currency. These various currencies are stores of value, and are traded between nations in foreign exchange markets, which determine the relative values of the different currencies. Currencies in this sense are defined by governments, and each type has limited boundaries of acceptance.Other definitions of the term ""currency"" are discussed in their respective synonymous articles banknote, coin, and money. The latter definition, pertaining to the currency systems of nations, is the topic of this article. Currencies can be classified into two monetary systems: fiat money and commodity money, depending on what guarantees the value (the economy at large vs. the government's physical metal reserves). Some currencies are legal tender in certain jurisdictions, which means they cannot be refused as payment for debt. Others are simply traded for their economic value. Digital currency arose with the popularity of computers and the Internet.