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Froot, Kenneth - 2001

This paper reexamines the widely-held wisdom that the currency exposure of international investments should be entirely hedged. It finds that the previously documented ability of hedges to reduce portfolio return variance holds at short horizons, but not at long horizons. At horizons of several...

Persistent link: https://www.econbiz.de/10012787885

What Lies Beneath the Euro's Effect on Financial Integration : Currency Risk, Legal Harmonization, or Trade?

Kalemli-Ozcan, Sebnem - 2010

Although recent research shows that the euro has spurred cross-border financial integration, the exact mechanisms … remain unknown. We investigate the underlying channels of the euro's effect on financial integration using data on bilateral … euro's impact on financial integration is primarily driven by eliminating the currency risk. Legislative …

Persistent link: https://www.econbiz.de/10013152591

When Britain Turned Inward : Protection and the Shift Towards Empire in Interwar Britain

De Bromhead, Alan - 2017

International trade became much less multilateral during the 1930s. Previous studies, looking at aggregate trade flows, have argued that discriminatory trade policies had comparatively little to do with this. Using highly disaggregated information on the UK's imports and trade policies, we find...

Persistent link: https://www.econbiz.de/10012963163

Temporary Shocks and Persistent Effects in the Urban System : Evidence from British Cities after the U.S. Civil War

Hanlon, William Walker - 2021

Urban economies are often heavily reliant on a small number of dominant industries, leaving them vulnerable to negative industry-specific shocks. This paper analyzes the long-run impacts of one such event: the large, temporary, and industry-specific shock to the British cotton textile industry...

Persistent link: https://www.econbiz.de/10013224364

Euro Membership as a U.K. Monetary Policy Option : Results from a Structural Model

DiCecio, Riccardo - 2010

in the United Kingdom and the euro area, have increased our ability to evaluate the effects that joining monetary union ….K. regime (CPI inflation targeting combined with a floating exchange rate), and adoption of the euro, as monetary policy options … stability under monetary union also diminishes if imports from the euro area are modeled as primarily intermediates instead of …

Persistent link: https://www.econbiz.de/10012757534

Uncovered Interest Parity, Forward Guidance, and the Exchange Rate

Galí, Jordi - 2022

, euro area and UK data points to a substantial deviation from that invariance prediction: expectations of interest rate …

Persistent link: https://www.econbiz.de/10013324699

Exchange Rate Volatility and First-Time Entry by Multinational Firms

Russ, Katheryn Niles - 2008

Using a model with upfront sunk costs, heterogeneous firms, and endogenous exchange rates, this paper demonstrates theoretically that volatility in fundamental variables such as the nominal interest rate that drive exchange rate volatility can simultaneously impact the entry behavior of...

Persistent link: https://www.econbiz.de/10012773155

Internationally Diversified Bond Portfolios : The Merits of Active Currency Risk Management

Levich, Richard M. - 2008

A new statistical procedure is used to test for weak form efficiency in the foreign exchange futures markets. Using daily currency futures prices for the 1976-1990 period, we conclude that successive exchange rate changes have not been independent We examine the implications of this finding for...

Persistent link: https://www.econbiz.de/10012774847

Large Hoarding of International Reserves and the Emerging Global Economic Architecture

Aizenman, Joshua - 2007

This paper analyzes competing interpretations for the large increases in the hoarding of international reserves by developing countries. While the first phase of the rapid hoarding of reserves in the aftermath of the East Asian crisis has been dominated by self insurance against exposure to...

Persistent link: https://www.econbiz.de/10012776454

On the Determinants of Exporters' Currency Pricing : History vs. Expectations

Fukuda, Shin-Ichi - 2006

The purpose of this paper is to investigate why the choice of invoice currency under exchange rate uncertainty depends not only on expectations but also on history. The analysis is motivated by the fact that the U.S. dollar has historically been the dominant vehicle currency in developing...

Persistent link: https://www.econbiz.de/10012779585