Essays about: "Uncovered Interest Parity UIP"
Showing result 1 - 5 of 8 essays containing the words Uncovered Interest Parity UIP.
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1. How does unexpected news about employment affect the exchange rate?
University essay from Uppsala universitet/Nationalekonomiska institutionenAbstract : The research conducted intends to examine how unexpected changes in employment may affect both exchange rates and interest rates. The results used in the analysis are extracted by running two ordinary least squares regressions with data structured as an unbalanced panel. READ MORE
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2. Is the Carry Trade strategy an explanation of the Uncovered Interest Parity puzzle?
University essay from Lunds universitet/Nationalekonomiska institutionenAbstract : This paper examines the uncovered interest rate parity (UIP) and extends the analysis in Spronk, Verschoor and Zwinkels (2013) by looking at the UIP between Sweden and the United Kingdom. The flaws of the UIP and the reasons for why it does not seem to hold, has been called the UIP puzzle. READ MORE
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3. Relationship between Currency Carry Trades and Gold Returns : A quantitative study of G-10 currencies: correlation and spillover effects for the last two decades.
University essay from Umeå universitet/FöretagsekonomiAbstract : Currency carry trade is an investment strategy that recently started gaining a lot of interest not only among investors and financial institutions but also academically. One of the underlying theoretical assumptions regarding the mechanisms of the foreign exchange market, the Uncovered Interest Parity has frequently been disproved in practice which has led to the conclusion that carry trade is profitable in practice. READ MORE
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4. Interest Rate Parity and Monetary Integration: A Cointegration Analysis of Sweden and the EMU
University essay from KTH/Matematik (Inst.)Abstract : This thesis provides a thorough analysis of the covered- and uncovered interest parity conditions (CIP, UIP) as well as the forward rate unbiasedness hypothesis (FRUH) for Sweden and the European Economic and Monetary Union (EMU). By studying data on interbank rates in Sweden (STIBOR) and the EMU (EURIBOR) as well as the corresponding spot- and forward exchange rates, monetary integration and country-specific risks are determined and analyzed with direct applications to the potential entry of Sweden into the EMU. READ MORE
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5. 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