Showing 1 - 10 of 489
This paper compares two approaches for examining the extent to which a country’s actual real effective exchange rate is consistent with economic fundamentals: the FEER approach, which involves calculating the real exchange rate that equates the current account at full employment with...
Persistent link: https://www.econbiz.de/10014400711
In this paper we extend the BEER (Behavioral Equilibrium Exchange Rate) approach which identifies an estimated equilibrium relationship between the real exchange rate and economic fundamentals. Here the economic fundamentals are decomposed using Johansen cointegration methods into transitory and...
Persistent link: https://www.econbiz.de/10014403514
movement in nominal exchange rate by studying the behavior of yen/DM exchange rate, using cointegration method. Results support … auto-regressive property. These findings imply that movements in the nominal yen/DM exchange rate is actually predictable …
Persistent link: https://www.econbiz.de/10014399967
interactions to examine the nominal effective exchange rates of the German mark, Japanese yen, and U.S. dollar for the recent …
Persistent link: https://www.econbiz.de/10014398230
The paper looks at the hypothesis that financial market liberalization can create a basis for more stable exchange rates, as deviations of exchange rates from equilibrium levels bring forth stabilizing flows of liquidity. This ""endogenous liquidity"" hypothesis suggests that opening financial...
Persistent link: https://www.econbiz.de/10014404080
We isolate a U.S. dollar currency premium by comparing corporate bonds issued in the dollar and the euro by firms o … without a currency hedge and about the same with a currency hedge when compared to the euro. This observed parity in currency … mix of their debt issuance depending on the relative borrowing cost between dollar and euro debt. In sum, the …
Persistent link: https://www.econbiz.de/10012605639
Bayesian semiparametric hierarchical panel data model, we estimate that the importing country's share of imports invoiced in …
Persistent link: https://www.econbiz.de/10011763554
The USD asset share of non-U.S. banks captures the demand for dollars by these investors. An instrumental variable strategy identifies a causal link from the USD asset share to the USD exchange rate. Cross-sectional asset pricing tests show that the USD asset share is a highly significant...
Persistent link: https://www.econbiz.de/10012252026
This paper examines how financial development influences the debt dollarization of nonfinancial firms in a sample of emerging market economies (EMEs). The macroeconomic channels are identified from an optimal portfolio allocation model and assessed empirically using the accounting information of...
Persistent link: https://www.econbiz.de/10012102196
the Canadian USD and the Euro; (iii) oil price shocks play a particularly important role for the Canadian USD (an oil …
Persistent link: https://www.econbiz.de/10011711595