This paper presents a theoretical framework for policy making based on the “impossible trinity” or the “trilemma” hypothesis. A simple optimization model shows that placing more weight in terms of preference for each of the three open macroeconomic policies — exchange rate stability,...

The External Balance Assessment (EBA) methodology has been developed by the IMF's Research Department as a successor to the CGER methodology for assessing current accounts and exchange rates in a multilaterally consistent manner. Compared to other approaches, EBA emphasizes distinguishing...

This paper examines the presence and the determinants of exchange risk premia in stock returns using firm level data from South Korea. We conduct empirical asset pricing tests based on cross-sectional data sorted by firm characteristics such as firm size, liquidity, foreign ownership, and...

The CIC achieved a 9.33% return on its global investment portfolio in 2013. The portfolio's asset allocation in 2013 revealed an increased allocation of assets to equity investments. Going forward, the CIC plans to focus on investments in the agriculture, high-tech, infrastructure and real...

A recent research stream develops currency adjusted stock indices. The analysis in previous papers is limited to daily closing data. This paper extends the existing body of literature by examining tick data. We examine tick data from 2002 through 2013 for eight indices. In general, results show...

Nigeria's economic situation in 2016 is fast degenerating into early eighties-like doomsday situation in which oil price collapse is translating into a currency crisis, inflationary spiral, fiscal collapse, and recession. This should not be so at all as this time is fundamentally different from...

The massive stocks of foreign exchange reserves, mostly held in the form of U.S. T-bonds by emerging economies, are still an important puzzle. Why do emerging economies continue to willingly loan to the United States despite the low rates of return? We suggest that a dynamic general equilibrium...

The purpose of this study is to test the relationship between GDR Conversion in the Egyptian Stock Market and the USD/EGP Exchange Rate. Our study is mainly motivated by the paucity of similar studies in context of MENA capital markets and in most other emerging markets.Lately a problem aroused...

This article shows that global financial markets cannot, by themselves, achieve net transfers of financial capital and real interest rate equalisation across countries and that the integration of both global financial markets and global goods markets is needed to achieve net transfers of capital...

Ensuring financial stability of the state economy in many countries is one of the key central bank objectives. Given the peculiarities of the Ukrainian economy in 2012-2014, it is extremely urgent to focus attention on the financial account for the crisis prevention. For a long time the...