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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

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

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

Safe Asset Scarcity and Aggregate Demand

Caballero, Ricardo J. - 2016

We explore the consequences of safe asset scarcity on aggregate demand in a stylized IS-LM/Mundell Fleming environment. Acute safe asset scarcity forces the economy into a “safety trap” recession. In the open economy, safe asset scarcity spreads from one country to the other via capital...

Persistent link: https://www.econbiz.de/10012997884

Global Macro Risks in Currency Excess Returns

Berg, Kimberly - 2017

We study the cross-sectional variation of carry-trade-generated currency excess returns in terms of their exposure to global macroeconomic fundamental risk. The risk factor is the cross-country high-minus-low conditional skewness of the unemployment rate gap. It gives a measure of global...

Persistent link: https://www.econbiz.de/10012948089

Exchange Rate Exposure and Risk Management : The Case of Japanese Exporting Firms

Ito, Takatoshi - 2015

This paper investigates the relationship between the Japanese firms' exposure to the exchange rate risk and risk management, such as choice of invoicing currency, and financial and operational hedge. The firm's exposure to the exchange rate risk is estimated by co-movements of the stock prices...

Persistent link: https://www.econbiz.de/10013025780

International Currency Exposures, Valuation Effects, and the Global Financial Crisis

Bénétrix, Agustín S. - 2015

We examine the evolution of international currency exposures, with a particular focus on the 2002-12 period. During the run up to the global financial crisis, there was a widespread shift towards positive net foreign currency positions, such that relatively few countries exhibited the archetypal...

Persistent link: https://www.econbiz.de/10013030632