Financial exchange rates and international currency exposures
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Financial exchange rates and international currency exposures

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Published by National Bureau of Economic Research in Cambridge, Mass .
Written in English

Subjects:

  • International finance -- Mathematical models

Book details:

About the Edition

Our goal in this project is to gain a better empirical understanding of the international financial implications of currency movements. To this end, we construct a database of international currency exposures for a large panel of countries over 1990-2004. We show that trade-weighted exchange rate indices are insufficient to understand the financial impact of currency movements. Further, we demonstrate that many developing countries hold short foreign-currency positions, leaving them open to negative valuation effects when the domestic currency depreciates. However, we also show that many of these countries have substantially reduced their foreign currency exposure over the last decade. Last, we show that our currency measure has high explanatory power for the valuation term in net foreign asset dynamics: exchange rate valuation shocks are sizable, not quickly reversed and may entail substantial wealth shocks.

Edition Notes

StatementPhilip Lane, Jay C. Shambaugh.
SeriesNBER working paper series -- no. 13433., Working paper series (National Bureau of Economic Research) -- working paper no. 13433.
ContributionsShambaugh, Jay C., National Bureau of Economic Research.
The Physical Object
Pagination52 p. :
Number of Pages52
ID Numbers
Open LibraryOL17635432M
OCLC/WorldCa173822135

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Financial Exchange Rates and International Currency Exposures Philip Lane and Jay C. Shambaugh NBER Working Paper No. September JEL No. F31,F32 ABSTRACT Our goal in this project is to gain a better empirical understanding of the international financial implications of currency . Downloadable! In order to gain a better empirical understanding of the international financial implications of currency movements, we construct a database of international currency exposures for a large panel of countries over We show that trade-weighted exchange rate indices are insufficient to understand the financial impact of currency movements and that our currency . A comprehensive guide to managing global financial risk. From the balance of payment exposure to foreign exchange and interest rate risk, to credit derivatives and other exotic options, futures, and swaps for miti-gating and transferring risk, this book provides a sim-ple yet comprehensive analysis of complex derivatives pricing and their application in risk by: 4.   Foreign-currency exposures on an economy’s external balance sheet may jeopardize financial stability when the exchange rate depreciates. Download (Free: KB)Author: Georgios Georgiadis, Feng Zhu.

Downloadable! Our goal in this project is to gain a better empirical understanding of the international financial implications of currency movements. To this end, we construct a database of international currency exposures for a large panel of countries over We show that trade-weighted exchange rate indices are insufficient to understand the financial impact of currency movements. Lane and Shambaugh: w Financial Exchange Rates and International Currency Exposures: Angrist, Autor, Hudson, and Pallais: w Leveling Up: Early Results from a Randomized Evaluation of Post-Secondary Aid: Grossman and Rockoff: w Fighting the Last War: Economists on the Lender of Last Resort: Attari, Gowrisankaran, Simpson, and Marx: w Does Information Feedback from In . Foreign-currency exposures on an economy’s external balance sheet may jeopardise financial stability when the exchange rate depreciates. In fact, theory suggests that in such an environment it may be optimal for monetary policy in a floating regime to reduce exchange rate variation by mimicking foreign monetary policy in order to dampen financial cycles rather than focusing exclusively on.   Foreign exchange exposure is classified into three types viz. Transaction, Translation and Economic Exposure. Transaction exposure deals with actual foreign currency transaction. Translation exposure deals with the accounting representation and economic exposure deals with little macro level exposure which may be true for the whole industry rather than just the firm under concern.

  Transaction exposure arises from the effect that exchange rate fluctuations have on a company’s obligations to make or receive payments denominated in foreign currency. This type of exposure . Get this from a library! Financial exchange rates and international currency exposures. [Philip R Lane; Jay C Shambaugh; National Bureau of Economic Research.] -- Our goal in this project is to gain a better empirical understanding of the international financial implications of currency movements. To this end, we construct a database of international currency. Get this from a library! Financial Exchange Rates and International Currency Exposures. [Philip Lane; Jay C Shambaugh] -- Our goal in this project is to gain a better empirical understanding of the international financial implications of currency movements. To this end, we construct a database of international currency. Foreign exchange exposure refers to the risk a company undertakes when making financial transactions in foreign currencies. All currencies can experience periods of high volatility which can adversely affect profit margins if suitable strategies are not in place to protect cash flow from sudden currency fluctuations.