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Exchange rate market expectations and Central Bank policy: The case of the Mexican peso-US dollar from 2005-2009

Abarca, Gustavo; Benavides, Guillermo; Rangel, José Gonzalo - 2010

We examine two approaches characterized by different tail features to extract market expectations on the Mexican peso-US dollar exchange rate. Expectations are gauged by risk-neutral densities. The methods used to estimate these densities are the Volatility Function Technique (VFT) and the...

Persistent link: https://www.econbiz.de/10010322542

The dollar during the Global Recession: US monetary policy and the exorbitant duty

Stavrakeva, Vania; Tang, Jenny - 2018

We document that during the Global Recession, US monetary policy easings triggered the "exorbitant duty" of the United States, the issuer of the world's dominant currency, by causing a dollar appreciation and a transfer of wealth from the United States to the rest of the world. This dollar...

Persistent link: https://www.econbiz.de/10012059601

A fundamental connection: Exchange rates and macroeconomic expectations

Stavrakeva, Vania; Tang, Jenny - 2020

This paper presents new stylized facts about exchange rates and their relationship with macroeconomic fundamentals. We show that macroeconomic surprises explain a large majority of the variation in nominal exchange rate changes at a quarterly frequency. Using a novel present value decomposition...

Persistent link: https://www.econbiz.de/10012606359

Firm export dynamics and the exchange rate: A quantitative exploration

Lopez-Martin, Bernabe - 2019

We develop a quantitative theoretical model of firm dynamics to analyze key determinants of the elasticity of exports with respect to the exchange rate. The model incorporates mechanisms that determine the firms? capacity to react when the profitability of exports change due to fluctuations in...

Persistent link: https://www.econbiz.de/10012616377

Got milk? The effect of export price shocks on exchange rates

Stein, Hillary - 2023

I examine the effect of exogenous terms of trade shocks on an exchange rate by turning to New Zealand's dairy auctions …

Persistent link: https://www.econbiz.de/10014442959

Risk management and derivatives losses

Levin-Konigsberg, Gabriel; Stein, Hillary; García … - 2023

Even though financial risk management has the ability to generate value, the use of financial derivatives among nonfinancial corporations remains limited. We identify a channel that contributes to this limited use: the decoupling of derivatives losses and operational gains. Specifically, firms...

Persistent link: https://www.econbiz.de/10014442975

Corporate financial policies and performance around currency crises

Bris, Arturo; Koskinen, Yrjö; Pons, Vicente - 2001

Using data from 17 countries that have suffered a currency crisis, this paper studies firm-level leverage and performance measures before and after a crisis has occurred. We show that in the years preceding a currency crisis, companies that are expected to benefit from currency depreciations...

Persistent link: https://www.econbiz.de/10010281399

Foreign Competition and Small-Firm Entry in US Manufacturing

Feinberg, Robert M. - 2009

In our increasingly globalized economy, the growth and profit prospects of domestic firms, especially small firms, seem clearly impacted by competitive pressures from foreign firms. This article analyzes annual data for 1989-1998 for 140 3-digit SIC manufacturing industries and for 1998-2004 for...

Persistent link: https://www.econbiz.de/10008494063

Export-led growth, real exchange rates and the fallacy of composition

Blecker, Robert A.; Razmi, Arslan - 2009

Persistent link: https://www.econbiz.de/10008494071

Currency Undervaluation and Sovereign Wealth Funds: A New Role for the World Trade Organization

Subramanian, Arvind; Mattoo, Aaditya - 2008

effective in dealing with undervalued exchange rates. We propose new rules in the World Trade Organization (WTO) to discipline … that there are large trade consequences of undervalued exchange rates, which act as both import tariffs and export … strike this bargain. Its services agreement, the General Agreement on Trade in Services (GATS), already covers investments by …

Persistent link: https://www.econbiz.de/10005012841