this risk is hedged through nominal assets rather than through equities …

reasonably the price of risk, and, in some cases, the MVE model is valuable in explaining expected equity returns. Unlike with …

the structure of international financial markets: one where there are complete markets for hedging consumption risk … internationally, and the other without risk-sharing possibilities. Our results are quite sharp: exporters will generally wish to set …

floating exchange rates yield higher welfare depend on the exact nature of price stickiness and on the degree of risk … failures of the law of one price are important. The evidence on price setting and risk-sharing opportunities is not refined …

membership is not associated with significantly greater risk sharing, though risk sharing is widespread within countries …

This paper investigates the behavior of the foreign exchange risk premium in two recent two-country intertemporal … risk premium in any general equilibrium model arises from the correlation of the exchange rate with consumption. In … arises endogenously because monetary shocks cause output and consumption to change. The size of the risk premium depends on …

risk averse. On the other hand, floating exchange rates are always preferred when prices are set in consumers' currencies …