A Resolution on UIP Puzzle The Case of Korean wonThe United
... 3. Discrete Timing of Interest Payments Because interest rates are discretely quoted, no interest payments are made during intraday trading. Interest payments are made near the end of the business day at what is known as the cutoff time. If a position is open at the cutoff time then discrete intere ...
... 3. Discrete Timing of Interest Payments Because interest rates are discretely quoted, no interest payments are made during intraday trading. Interest payments are made near the end of the business day at what is known as the cutoff time. If a position is open at the cutoff time then discrete intere ...
NBER WORKING PAPERS SERIES DEVALUATION EXPECTATIONS: ThE SWEDISH KRONA 1982-1991 Hans Lindberg
... The data used in this study are daily and cover the period January 1, 1982February 1?, 1991. Interest rates on Euro-currency deposits and spot exchange rates were ...
... The data used in this study are daily and cover the period January 1, 1982February 1?, 1991. Interest rates on Euro-currency deposits and spot exchange rates were ...
THE ENIGMATIC DOLLAR-EURO EXCHANGE RATE AND THE
... unregulated, mostly over the counter trade (OTC), let alone a few rare central bank interventions, it is the model of a FX market in a perfectly floating exchange rate regime. All FX transactions are highly concentrated regionally on the UK (40.5%) and the U.S. (18.9%), meaning the City of London 3 ...
... unregulated, mostly over the counter trade (OTC), let alone a few rare central bank interventions, it is the model of a FX market in a perfectly floating exchange rate regime. All FX transactions are highly concentrated regionally on the UK (40.5%) and the U.S. (18.9%), meaning the City of London 3 ...
Australian Government Foreign Exchange Risk Management
... pre-pay purchases with the intention of removing foreign exchange risk.4 Hedging Arrangements - Embedded Structures within Contracts, Arrangements or Agreements The following are examples of embedded option structures where there is an impact on the foreign currency exposure. It is important for ent ...
... pre-pay purchases with the intention of removing foreign exchange risk.4 Hedging Arrangements - Embedded Structures within Contracts, Arrangements or Agreements The following are examples of embedded option structures where there is an impact on the foreign currency exposure. It is important for ent ...
trento 25/3 1998 - Department of Economics
... regime is influenced by the rules governing the fiscal regime and vice versa. The evolution of this interaction over the past 100 years is the theme of this study. In the present macro-theoretical framework, the private sector, assuming rational expectations, makes forecasts and decisions based on i ...
... regime is influenced by the rules governing the fiscal regime and vice versa. The evolution of this interaction over the past 100 years is the theme of this study. In the present macro-theoretical framework, the private sector, assuming rational expectations, makes forecasts and decisions based on i ...
Ignorance and Influence: U.S. Economists on Argentina`s
... currency, then it always has enough reserves to buy back all of this currency at the designated exchange rates. Therefore, it can always maintain the exchange rate between currency and reserves as long as it never cheats by using reserves to buy something other than its currency. Problems can arise, ...
... currency, then it always has enough reserves to buy back all of this currency at the designated exchange rates. Therefore, it can always maintain the exchange rate between currency and reserves as long as it never cheats by using reserves to buy something other than its currency. Problems can arise, ...
The Eurosystem`s bond purchases and the exchange rate of the
... euro’s exchange rate. For example, a depreciation of the euro tends to reflect not only the quantitative easing of the Eurosystem, but also its standard policy measures as well as the gradual tightening of the monetary policy stance in the United States during the same period. A study conducted at t ...
... euro’s exchange rate. For example, a depreciation of the euro tends to reflect not only the quantitative easing of the Eurosystem, but also its standard policy measures as well as the gradual tightening of the monetary policy stance in the United States during the same period. A study conducted at t ...
NBER WORKING PAPER SERIES THE FUTURE OF EMU: WHAT DOES
... Federal Reserve Banks issues dollar bills perfectly acceptable in every reserve district a five dollar bill issued by the Federal Reserve Bank of Richmond is always perfectly interchangeable with a five dollar bill issued by any other Federal Reserve Bank. A national monetary union has as a rule one ...
... Federal Reserve Banks issues dollar bills perfectly acceptable in every reserve district a five dollar bill issued by the Federal Reserve Bank of Richmond is always perfectly interchangeable with a five dollar bill issued by any other Federal Reserve Bank. A national monetary union has as a rule one ...
View/Open
... exchange reserves are an important factor of any well-managed economy. These reserves help cushion the effects of economic shocks, domestic or international. According to IMF (2013), the significance of reserves can be demonstrated by the manner in which countries such as Indonesia are currently dea ...
... exchange reserves are an important factor of any well-managed economy. These reserves help cushion the effects of economic shocks, domestic or international. According to IMF (2013), the significance of reserves can be demonstrated by the manner in which countries such as Indonesia are currently dea ...
The euro as an international reserve currency: macroeconomic
... ultimately depends on the issuer’s fiscal capacity. In a growing world, then, the United States will inevitably lose its reserve currency monopoly. At the same time, the debate about global exchange rate arrangements has intensified over the past few years, partly driven by global imbalances and lar ...
... ultimately depends on the issuer’s fiscal capacity. In a growing world, then, the United States will inevitably lose its reserve currency monopoly. At the same time, the debate about global exchange rate arrangements has intensified over the past few years, partly driven by global imbalances and lar ...
The Libyan Asset Freeze and Its Application to Foreign Government
... 7. See Hoffman & Giddy, Lessons from the Iranian Experience: National Currencies as InternationalMoney, 3 J. COMP. CORP. L. & SEC. REG. 73, 76 (1981) (defining a Eurodollar account as a dollar-denominated bank deposit held in a bank outside the United States). 8. See Exec. Order No. 12,170, 3 C.F.R. ...
... 7. See Hoffman & Giddy, Lessons from the Iranian Experience: National Currencies as InternationalMoney, 3 J. COMP. CORP. L. & SEC. REG. 73, 76 (1981) (defining a Eurodollar account as a dollar-denominated bank deposit held in a bank outside the United States). 8. See Exec. Order No. 12,170, 3 C.F.R. ...
International Reserves and Foreign Currency Liquidity
... This book is an update of the International Reserves and Foreign Currency Liquidity: Guidelines for a Data Template (Guidelines) issued in 2001. It sets forth the underlying framework for the Data Template on International Reserves and Foreign Currency Liquidity (Reserves Data Template) and provides ...
... This book is an update of the International Reserves and Foreign Currency Liquidity: Guidelines for a Data Template (Guidelines) issued in 2001. It sets forth the underlying framework for the Data Template on International Reserves and Foreign Currency Liquidity (Reserves Data Template) and provides ...
NBER WORKING PAPER SERIES GLOBAL ECONOMIC ARCHITECTURE
... with the growing exposure to currency crisis and sudden stops face a well-known contender in a modern incarnation of mercantilism: the accumulation of international reserves triggered by concerns about export competitiveness. This explanation has been advanced by Dooley, Folkerts-Landau and Garber ( ...
... with the growing exposure to currency crisis and sudden stops face a well-known contender in a modern incarnation of mercantilism: the accumulation of international reserves triggered by concerns about export competitiveness. This explanation has been advanced by Dooley, Folkerts-Landau and Garber ( ...
Momentum`s Got Style Style Investing and - Aalto
... limited cognitive abilities so that we can make decisions with less effort than if we treated each object uniquely. Categorization applies also to financial markets where information is abundant. Investors categorize individual assets into asset classes, such as equities, bonds, or currencies, to si ...
... limited cognitive abilities so that we can make decisions with less effort than if we treated each object uniquely. Categorization applies also to financial markets where information is abundant. Investors categorize individual assets into asset classes, such as equities, bonds, or currencies, to si ...
Dreher ge08 6483485 en
... occurs in a country. First, IMF program approval is associated with a certain amount of money.1 The effect of this money is, however, not obvious. In theory, IMF credit is meant to bolster reserves. Since low levels of foreign currency reserves increase the likelihood of speculative attacks, a boost ...
... occurs in a country. First, IMF program approval is associated with a certain amount of money.1 The effect of this money is, however, not obvious. In theory, IMF credit is meant to bolster reserves. Since low levels of foreign currency reserves increase the likelihood of speculative attacks, a boost ...
NBER WORKING PAPER SERIES THE BARNETT CRITIQUE AFTER THREE DECADES:
... resolve the merits of simple-sum versus superlative indexes of money on the basis of goodnessof-fit criteria or have judged money not to be an important variable when a simple-sum measure alone was used in empirical work, the current paper shows that, with a model fully-specified at the level of ta ...
... resolve the merits of simple-sum versus superlative indexes of money on the basis of goodnessof-fit criteria or have judged money not to be an important variable when a simple-sum measure alone was used in empirical work, the current paper shows that, with a model fully-specified at the level of ta ...
What Can Exchange Rates Tell Us?
... Bergsten and Williamson (1983) did not define exchange rate misalignment, but they implied that misalignments are prolonged departures from fundamental equilibrium.10 They carefully described three concepts of equilibrium exchange rates: a “market equilibrium” that is produced by an absence of offic ...
... Bergsten and Williamson (1983) did not define exchange rate misalignment, but they implied that misalignments are prolonged departures from fundamental equilibrium.10 They carefully described three concepts of equilibrium exchange rates: a “market equilibrium” that is produced by an absence of offic ...
Currency Jumps, Cojumps and the Role of Macro News
... explain the behavior of exchange rates led Frankel and Rose (1994) to conclude that: “The case for macroeconomic determinants of exchange rates is in a sorry state ... results indicate that no model based on such standard fundamentals like money supplies, real income, interest rates, inflation rate ...
... explain the behavior of exchange rates led Frankel and Rose (1994) to conclude that: “The case for macroeconomic determinants of exchange rates is in a sorry state ... results indicate that no model based on such standard fundamentals like money supplies, real income, interest rates, inflation rate ...
Identification of US Monetary Policy Shocks
... regarding the behavior of exchange rates, UIP, both conditional and unconditional, fails during the Volcker era but tends to hold during the post-Volcker era. The conditional excess returns on foreign currency following US monetary shocks are positive in the Volcker era and close to zero in the pos ...
... regarding the behavior of exchange rates, UIP, both conditional and unconditional, fails during the Volcker era but tends to hold during the post-Volcker era. The conditional excess returns on foreign currency following US monetary shocks are positive in the Volcker era and close to zero in the pos ...
Currency war
Currency war, also known as competitive devaluation, is a condition in international affairs where countries compete against each other to achieve a relatively low exchange rate for their own currency. As the price to buy a country's currency falls so too does the price of exports. Imports to the country become more expensive. So domestic industry, and thus employment, receives a boost in demand from both domestic and foreign markets. However, the price increase for imports can harm citizens' purchasing power. The policy can also trigger retaliatory action by other countries which in turn can lead to a general decline in international trade, harming all countries.Competitive devaluation has been rare through most of history as countries have generally preferred to maintain a high value for their currency. Countries have generally allowed market forces to work, or have participated in systems of managed exchanges rates. An exception occurred when currency war broke out in the 1930s. As countries abandoned the Gold Standard during the Great Depression, they used currency devaluations to stimulate their economies. Since this effectively pushes unemployment overseas, trading partners quickly retaliated with their own devaluations. The period is considered to have been an adverse situation for all concerned, as unpredictable changes in exchange rates reduced overall international trade.According to Guido Mantega, the Brazilian Minister for Finance, a global currency war broke out in 2010. This view was echoed by numerous other government officials and financial journalists from around the world. Other senior policy makers and journalists suggested the phrase ""currency war"" overstated the extent of hostility. With a few exceptions, such as Mantega, even commentators who agreed there had been a currency war in 2010 generally concluded that it had fizzled out by mid-2011.States engaging in possible competitive devaluation since 2010 have used a mix of policy tools, including direct government intervention, the imposition of capital controls, and, indirectly, quantitative easing. While many countries experienced undesirable upward pressure on their exchange rates and took part in the ongoing arguments, the most notable dimension of the 2010–11 episode was the rhetorical conflict between the United States and China over the valuation of the yuan. In January 2013, measures announced by Japan which were expected to devalue its currency sparked concern of a possible second 21st century currency war breaking out, this time with the principal source of tension being not China versus the US, but Japan versus the Eurozone. By late February, concerns of a new outbreak of currency war had been mostly allayed, after the G7 and G20 issued statements committing to avoid competitive devaluation. After the European Central Bank launched a fresh programme of quantitative easing in January 2015, there was once again an intensification of discussion about currency war.