Showing 141 - 150 of 58,120
This paper discusses the economics of how Bitcoin achieves data immutability, and thus payment finality, via costly computations, i.e., proof-of-work." Further, it explores what the future might hold for cryptocurrencies modelled on this type of consensus algorithm. The conclusions are, first,...
Persistent link: https://www.econbiz.de/10012849495
Tourism is a major source of service receipts for many countries, including Taiwan. The two leading tourism countries for Taiwan, comprising a high proportion of world tourist arrivals to Taiwan, are Japan and USA, which are sources of short and long haul tourism, respectively. As it is well...
Persistent link: https://www.econbiz.de/10013147805
floating exchange rate arrangements. The FXI rule addresses a market failure: the absence of hedging solution for tail exchange …
Persistent link: https://www.econbiz.de/10013243054
regulation, I show that the regulation causes a reduction in the supply of FX derivatives. Controlling for hedging demand, I find … regulation limits the banks’ ratio of FX derivatives positions to capital. By using cross-bank variation in the tightness of the … that exporting firms reduce hedging with constrained banks by 47% relative to unconstrained banks. Further, I show that the …
Persistent link: https://www.econbiz.de/10013243515
In this paper, I introduce the modeling of currency returns conditional on the interest rate differential and the real exchange rate under the assumption that FX returns are skew-t distributed. Beyond the well-known relationship between the currency risk premium and its risk factors, I document...
Persistent link: https://www.econbiz.de/10013243986
We consider an exporting firm facing FX risk. We show that FX options are not used for hedging, if there is no ex …-post production flexibility. Hence, in the standard setting of having no ex-post optionality, hedging with forwards is the best choice ….The value of FX options for hedging arises as soon as there are real options for the exporter like determination of the …
Persistent link: https://www.econbiz.de/10013060727
It is generally acknowledged that one of the risks faced by any company is FX risk, especially when the business operates internationally. For individual companies, exposure to FX risk results in different financial implications, stressing such parameters as the industry affiliation and the...
Persistent link: https://www.econbiz.de/10012642502
In recent years, issues related to the management of foreign exchange reserves have gained prominence, and reserve management practices have evolved rapidly. Against this background, the Monetary and Economic Department of the Bank for International Settlements organised an ad hoc meeting of...
Persistent link: https://www.econbiz.de/10012753510
Leibowitz, Bader, and Kogelman (JFI v.3, 1993) who show that hedging currency risk converts some or all of the foreign … costly. In this paper, we explore the conditions under which the multinational firm can dramatically lower hedging costs by …
Persistent link: https://www.econbiz.de/10012753671
hedging are probably not the primary motivation for why HDG undertakes a risk management program. Instead, informational … asymmetries, facilitation of internal contracting, and competitive pricing concerns seem to motivate hedging. How HDG hedges … factors, and recent hedging outcomes …
Persistent link: https://www.econbiz.de/10012755976