Similar Search Results

Rigobon, Roberto - 2021

The empirical literature on contagion has mainly measured the propagation of shocks across countries using daily stock markets, interest rates, and exchange rates. Several methodologies have been used for this purpose, however, the properties of the data introduces important limitations on the...

Persistent link: https://www.econbiz.de/10013243366

Free Lunch! Arbitrage Opportunities in the Foreign Exchange Markets

Ito, Takatoshi - 2012

Using the "firm" quotes obtained from the tick-by-tick EBS (electronic broking system that is a major trading platform for foreign exchanges) data, it is found that risk-free arbitrage opportunities--free lunch--do occur in the foreign exchange markets, but it typically last only a few seconds....

Persistent link: https://www.econbiz.de/10013097780

Taylor Rule Exchange Rate Forecasting During the Financial Crisis

Molodtsova, Tanya - 2012

interest rate in response to inflation and either the output or the unemployment gap, for the euro/dollar exchange rate with …

Persistent link: https://www.econbiz.de/10013101336

Emerging Local Currency Bond Markets

Burger, John D. - 2010

We assess the development of local currency bond markets in emerging market economies (EMEs). Supported by policies and laws that helped to improve macroeconomic stability and creditor rights, many local currency EME bond markets have grown substantially over the past decade and have also...

Persistent link: https://www.econbiz.de/10013139558

Currency Mismatches, Debt Intolerance and Original Sin : Why They are Not the Same and Why it Matters

Eichengreen, Barry; Hausmann, Ricardo; Panizza, Ugo - 2021

Recent years have seen the development of a large literature on balance sheet factors in emerging-market financial crises. In this paper we discuss three concepts widely used in this literature. Two of them original sin' and debt intolerance' seek to explain the same phenomenon, namely, the...

Persistent link: https://www.econbiz.de/10013225038

Dominant Currencies : How Firms Choose Currency Invoicing and Why it Matters

Amiti, Mary; Itskhoki, Oleg; Konings, Jozef - 2022

foreign currencies, especially in the US dollar, exhibiting a lower pass-through of the euro-destination exchange rate and a …

Persistent link: https://www.econbiz.de/10013291980

Are Hard Pegs Ever Credible in Emerging Markets? Evidence from the Classical Gold Standard

Mitchener, Kris James - 2010

We test whether fixed exchange rate regimes are ever credible in emerging markets by analyzing the behavior of short-term domestic trade bills across countries during the classical gold standard period, the most widely used hard peg in modern financial history. We exploit the fact that global...

Persistent link: https://www.econbiz.de/10013150729

Dollar Funding and the Lending Behavior of Global Banks

Ivashina, Victoria - 2012

in which such banks cut dollar lending more than euro lending in response to a shock to their credit quality. Because … these banks rely on wholesale dollar funding, while raising more of their euro funding through insured retail deposits, the … dollar funding, there were significant violations of euro-dollar CIP. Moreover, dollar lending by Eurozone banks fell …

Persistent link: https://www.econbiz.de/10013098138

How Did the Dollar Peg Fail in Asia?

Ito, Takatoshi; Ogawa, Eiji; Sasaki, Yuri Nagataki - 2021

In this paper we have constructed a theoretical model in which Asian firms maximize their profit, competing with Japanese and US firms in their markets. The duopoly model is used to determine export prices and volumes in response to the exchange rate fluctuations vis-...-vis the Japanese yen and...

Persistent link: https://www.econbiz.de/10013226986

Default, Currency Crises and Sovereign Credit Ratings

Reinhart, Carmen M. - 2021

Sovereign credit ratings play an important role in determining the terms and the extent to which countries have access to international capital markets. In principle, there is no reason why changes in sovereign credit ratings should be expected to systematically predict a currency crisis. In...

Persistent link: https://www.econbiz.de/10013227490