We suggest a pseudo economic openness that has a linear relationship with the real exchange rate volatility. The pseudo … economic openness implies that the real exchange rate volatility is a concave function of pure economic openness. Therefore …, the pseudo economic openness should be used to analyze the real exchange rate volatility instead of pure economic openness …

implications for exchange rates, volatility, returns to currency investing, and transaction costs. This blow-by-blowʺ narrative is …

There has been controversy between (two-country) theory and the empirics about whether hedging against real exchange … rate fluctuations in the goods market influences foreign equity holdings. This study reconciles the theory with the … exchange rate fluctuations. Further, our theory calls for a country's covariance-variance ratio to be constructed as the sum of …