Real Exchange Rates and the International Mobility of Capital
نویسندگان
چکیده
منابع مشابه
Interaatianal Capital Mobility and Exchange Rate Valatility
Three post-1980 developments have instilled in many observers a feeling that all is not quite right with the world financial system: the international debt problem of many developing countries, the large U.S. current account deficit and the corresponding cumulation of foreign indebtedness, and the heightened volatility of exchange rates and other asset prices in world financial markets. To what...
متن کاملInternational Prices and Exchange Rates
We survey the recent empirical and theoretical developments in the literature on the relation between prices and exchange rates. After updating some of the major findings in the empirical literature we present a simple framework to interpret this evidence. We review theoretical models that generate insensitivity of prices to exchange rate changes through variable markups, both under flexible pr...
متن کاملExchange Rates, Equity Prices and Capital Flows
We develop an equilibrium model in which exchange rates, stock prices and capital flows are jointly determined under incomplete forex risk trading. Incomplete hedging of forex risk, documented for U.S. global mutual funds, has three important implications: 1) exchange rates are almost as volatile as equity prices when the forex liquidity supply is not infinitely price elastic; 2) higher returns...
متن کاملInternational Capital Markets and Foreign Exchange Risk ∗
The relation between the volatilities of pricing kernels associated with different currencies and the volatility of the exchange rate between the currencies is derived under the assumption of integrated capital markets, and the volatilities of the pricing kernels are related to the foreign exchange risk premium. Time series of pricing kernel volatilities are estimated from panel data on bond yi...
متن کاملInequality and Real Exchange Rates
Kocherlakota and Pistaferri (2007) describe two different models (Private Information Pareto Optimal and Incomplete Markets) of how households partially insure themselves against idiosyncratic shocks. They demonstrate that the models differ in terms of their implications for real exchange rates. In this paper, we use data from a wide range of countries, and document that there is a statististic...
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ژورنال
عنوان ژورنال: SSRN Electronic Journal
سال: 1999
ISSN: 1556-5068
DOI: 10.2139/ssrn.159690