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general-equilibrium theory of exchange rate determination based on the interaction between monetary policy and time …
Persistent link: https://www.econbiz.de/10013123697
This paper proposes an explanation of the international home bias in equity based on ambiguity aversion. Doubts imply an additional hedging motif driven by the interaction between real exchange rate risk and ambiguity aversion. What matters is the long-run as opposed to the short-run risk....
Persistent link: https://www.econbiz.de/10012757854