Jimenez-Martin, Juan Angel Jimenez Martin; Urrea, … - Facultad de Ciencias Económicas y Empresariales, … - 2003
The goal of this paper is to identify the main determinants of the risk premium in some European currency markets just before the EMU. To do this the authors propose an exchange rate model and derive a formula for the forward premium. This formula includes money and production variables and is...