Narrow search
Showing 1 - 10 of 4,248
Cover Image
Dollar Bond, Foreign Discount and Exchange Rate Risk
Wang, Junxuan - 2023
In this paper, I examine the heterogeneous exposure of USD-denomination bonds (dollar bonds) to exchange rate risks. An appreciation of the US dollar increases the credit spread differential, referred to as the Foreign Discount, between dollar bonds issued by non-US and US firms. I provide both...
Persistent link: https://www.econbiz.de/10014257383
Cover Image
The portfolio theory of inflation and policy (in)effectiveness
Bossone, Biagio - 2019
resources internationally based, inter alia, on the perceived policy credibility of the national authorities and their policies …. The PTI shows that when a country has low credibility and is heavily indebted, investors hold its economy to a tighter … higher inflation, with limited or no impact on output. On the other hand, high credibility creates space for effective and …
Persistent link: https://www.econbiz.de/10012012446
Cover Image
The portfolio theory of inflation (and policy effectiveness)
Bossone, Biagio - 2019
policy credibility: when a country's credibility is low, they hold its economy to a tighter intertemporal budget constraint … credibility creates space for effective and noninflationary macro policies but, if such space is abused, credibility gets …
Persistent link: https://www.econbiz.de/10011993031
Cover Image
The International Monetary System After the Financial Crisis
Dorrucci, Ettore - 2014
The main strength of today's international monetary system – its flexibility and adaptability to the different needs of its users – can also become its weakness, as it may contribute to unsustainable growth models and imbalances. The global financial crisis has shown that the system cannot...
Persistent link: https://www.econbiz.de/10013069527
Cover Image
Carry Trade Dynamics Under Capital Controls : The Case of China
Zhang, Michelle - 2015
Interest rate differentials between China and the rest of the world provide an attractive target for currency carry trade strategies, but remains problematic due to existing capital controls. We focus on copper holdings as an asset used to facilitate the carry trade. Using a unique dataset of...
Persistent link: https://www.econbiz.de/10013020274
Cover Image
Capital Controls and Exchange Rate Instability in Developing Economies
Hutchison, Michael M.; Glick, Reuven - 2001
A large literature on the appropriate sequencing of financial liberalization suggests that removing capital controls prematurely may contribute to currency instability. This paper investigates whether legal restrictions on international capital flows are associated with greater currency...
Persistent link: https://www.econbiz.de/10014123719
Cover Image
Fiscal Regimes and the Exchange Rate
Mirkov, Nikola; Alberola, Enrique; Cantú, Carlos; … - 2022
In this paper, we argue that the effect of monetary and fiscal policies on the exchange rate depends on the fiscal regime. A contractionary monetary (expansionary fiscal) shock can lead to a depreciation, rather than an appreciation, of the domestic currency if debt is not backed by future...
Persistent link: https://www.econbiz.de/10013308762
Cover Image
A systematic comparison of professional exchange rate forecasts with judgmental forecasts of novices: Are there substantial differences?
Schmidt, Robert; Leitner, Johannes - 2004
The study at hand deals with the expectations of professional analysts and novices in the context of foreign exchange markets. We analyze the respective forecasting accuracy and our results indicate that there exist substantial differences between professional forecasts and judgmental forecasts...
Persistent link: https://www.econbiz.de/10010296526
Cover Image
Biases of professional exchange rate forecasts: Psychological explanations and an experimentally based comparison to novices
Leitner, Johannes; Schmidt, Robert; Bofinger, Peter - 2003
The empirical performance of macroeconomic exchange rate models is more than disappointing. This dismal result is also reflected in the forecasting capabilities of professional analysts: all in all, analysts are not in a position to beat naïve random walk forecasts. The root for this deficient...
Persistent link: https://www.econbiz.de/10010305737
Cover Image
Zur Qualität professioneller Wechselkursprognosen
Schmidt, Robert - 2003
Die Berücksichtigung der zukünftigen Entwicklung des Wechselkurses ist sowohl für internationale Unternehmen als auch für international tätige Investoren unabdingbar. Allerdings ist die Erstellung von Wechsel- kursprognosen schwierig, da bis zum heutigen Zeitpunkt kein allgemein anerkanntes...
Persistent link: https://www.econbiz.de/10010305747