Border prices of traded goods are highly sensitive to exchange rates, but the CPI, and the retail prices of these goods, are more stable. Our paper decomposes the sources of this stability for twenty-one OECD countries, focusing on the important roles of distribution margins and imported inputs...

This paper presents an empirical analysis of transmission rates from exchange rate movements to import prices, across countries and product categories, in the euro area over the last fifteen years. Our results show that the transmission of exchange rate changes to import prices in the short run...

This paper looks at the performance record of Mamp;As that took place in the European Union financial industry in the period 1998-2002. First, the paper reports evidence on shareholder returns from mergers. Merger announcements brought positive excess returns to the shareholders of the target...

This paper studies how investment and production in an economy is allocated across sectors when they face asymmetric financial conditions. Namely, when investors in one sector may run projects with higher loan-to-values than in another sector. Investors decide where to invest based on total...

Spanish Abstract: Se aborda la compra de Endesa en 2007. Este documento contiene una valoracioacute;n de las acciones de Endesa y 3 artiacute;culos publicados en enero y febrero de 2006 sobre el valor de las acciones de Endesa. Finalmente, Enel y Acciona compraron el 92% de las acciones de Endesa...

This paper uses a new data source, options on the pound-mark cross-rate, to examine the credibility of the exchange rate band between the German mark and the British pound in the Exchange Rate Mechanism from October l990 through Ausust l992. Using two arbitrage-based tests, we provide clear...

This paper tests the expectations hypothesis in the term structure of volatilities in foreign exchange options. In particular, it addresses whether long-dated volatility quotes are consistent with expected future short-dated volatility quotes, assuming rational expectations. For options observed...

This paper tests the expectations hypothesis in the term structure of volatilities in foreign exchange options. In particular, it addresses whether long-dated volatility quotes are consistent with expected future short-dated volatility quotes, assuming rational expectations. For options observed...

This chapter explores the ownership, locational and internalization advantages of outward and inward Spanish foreign direct investment (FDI) in order to test the predictions of the theory of the investment development path (IDP) in the case of a middle-income country. We first present the...

The imbalanced, yet mutually beneficial, trading relationship between the United States and Asia has long been one of international finance’s most perplexing mysteries. Although the United States continues to post a substantial trade deficit—and China reaps the benefits of a surplus—the...