Essays about: "interest rate parity theory"
Showing result 1 - 5 of 8 essays containing the words interest rate parity theory.
-
1. Exchange Rate Risk and Forecasting
University essay from Lunds universitet/Nationalekonomiska institutionenAbstract : Since the collapse of the Bretton Woods system, the system of fixed exchange rates amongst principal industrial countries, in the early 1970s, a new era began, introducing the floating exchange rate regime. Since the inception of the floating rate regime, the general interest in forecasting exchange rate movements has grown considerably. READ MORE
-
2. Uncovered Interest Parity and the Financial Crisis of 2007 : An econometric study of the robustness of the uncovered interest parity over different time periods, with varying economic stability.
University essay from Högskolan i Jönköping/IHH, NationalekonomiAbstract : The current intellectual climate regarding economics seems to be at an agreement regarding the theory of uncovered interest parity and its unreliability within real life application. The purpose of this thesis is to test how the theory holds over periods with varying economic stability, both using a short- and long-horizon test in order to establish the usefulness of uncovered interest parity as a predictor for exchange rate movements. READ MORE
-
3. Black Market Premium, Case study: Republic of Belarus
University essay from Handelshögskolan i Stockholm/Institutionen för nationalekonomiAbstract : We extend the theory of uncovered interest rate parity to explain the black market premium. The theory is applied to different economic-monetary regimes in Belarus and tested through the estimation of a vector error-correction model (VECM) for the cointegrating relationship between black market prices, interest rate differentials and inflation differentials, using a newly created dataset. READ MORE
-
4. Will the Asian countries buy up the United States? : Current account imbalances and the Uncovered Interest Rate Parity: Japan, China and the U.S. 1970-2008
University essay from IHH, NationalekonomiAbstract : This paper aims to explain the current account imbalances between the United States of America, Japan and China. According to theory, such imbalances should offset each other so that the international balance of payments account is zero. The study also tests the Uncovered Interest Rate Parity (UIP) theory for the same sample of countries. READ MORE
-
5. Currency Future Efficiency : Do Currency Futures Predict Future Spot Exchange Rates?
University essay from Handelshögskolan vid Umeå universitetAbstract : This paper has tested the efficiency, weak form according to EMH, of the currency future market. The efficiency test has been incorporated in the research question since the market has to be efficient in order for the future to work as predictor of the future spot rate - Can currency futures be used as a tool for predicting futures spot exchange rate? The two sub questions are - Is the prediction power of currency futures stable over time and is the prediction power of currency futures similar for different currencies? The main theory in the research is the Efficient Market Hypothesis and the Random Walk Hypothesis. READ MORE
