64 posts on "Exchange Rates"
August 18, 2014
Gates, Fees, and Preemptive Runs
In the academic literature on banks, “suspension of convertibility”—that is, preventing the exchange of deposits at par for cash—has traditionally been seen as a potential means of preventing economically damaging bank runs.
July 11, 2014
Crisis Chronicles: The Collapse of the French Assignat and Its Link to Virtual Currencies Today
In the late 1700s, France ran a persistent deficit and by the late 1780s struggled with how to balance the budget and pay down the debt.
July 7, 2014
Why Hasn’t the Yen Depreciation Spurred Japanese Exports?
The Japanese yen depreciated 30 percent from its peak in the fourth quarter of 2011 against its trading partners.
June 25, 2014
Do Currency Forwards Say Anything about the Future Value of the U.S. Dollar?
J. Benson Durham Currency forwards do include useful information about the future value of the U.S. dollar, but any messages are hard to decipher without tools. Just as the yield curve reflects expected short rates as well as term premiums, foreign exchange forwards embed not only anticipated depreciation but also premiums for currency risk. This […]
May 9, 2014
April 1, 2014
Mixing and Matching Collateral in Dealer Banks
The failure or near-collapse of some of the largest dealer banks on Wall Street in 2008 highlighted the profound complexity of the industry.
March 10, 2014
Has Automated Trading Promoted Efficiency in the FX Spot Market?
The relative merits of algorithmic and high-frequency trading are most often discussed in the context of equity markets.
March 5, 2014
Risk Aversion, Global Asset Prices, and Fed Tightening Signals
The global sell-off last May of emerging market equities and currencies of countries with high interest rates (“carry-trade” currencies) has been attributed to changes in the outlook for U.S. monetary policy, since the sell-off took place immediately following Chairman Bernanke’s May 22 comments concerning the future of the Fed’s asset purchase programs.
Posted at 7:00 am in Euro Area, Exchange Rates, Fed Funds, Financial Markets, International Economics, Monetary Policy | Permalink | Comments (2)
March 3, 2014
How Unconventional Are Large‑Scale Asset Purchases?
The large-scale asset purchases (LSAPs) undertaken by the Fed starting in late November 2008 are widely considered to be a form of “unconventional” monetary policy.
November 25, 2013
A Way With Words: The Economics of the Fed’s Press Conference
When central bankers speak, traders, journalists, and politicians listen with bated breath.
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