-best production. The longer time needed for export shipments induces a tighter credit constraint on exporters than on purely domestic …

incomplete forex risk trading. Incomplete hedging of forex risk, documented for U.S. global mutual funds, has three important …

volatility on international trade. A common explanation is the availability of hedging instruments. This paper examines the … empirical validity of this explanation using data on over 1,000 country pairs. Which countries have currency hedging instruments …. There are two main findings. First, there is no evidence in the data to support the validity of the hedging hypothesis …

in foreign currency. So the firm's hedging strategy is simple: sell foreign currency futures equal to the value of its … and its marginal cost in order to assess its exposure to exchange rates. So its hedging strategy also requires detailed …

assumptions have until very recently usually been made about it. We refer to the relation of exchange rate changes, export prices … in the exchange rate might also alter the relationship between the export price and the domestic price of a given product … theory of international trade and more recently explicitly by advocates of the monetary approach to the balance of payments …

construction of trade models that a country's export price for a particular product is identical to its domestic price. Any impact … of foreign or domestic events on prices is expected to fall identically on the export and the domestic price for a good … are fairly substantial and long-lasting divergences between export and domestic price changes for the same or closely …

-Bretton-Woods data from the United States, the United Kingdom, and Japan, we report four main findings: First, there is no exchange rate …

and forecasting. Building on the theory of continuous-time arbitrage-free price processes and the theory of quadratic …