Essays about: "interest rate differentials"

Showing result 1 - 5 of 13 essays containing the words interest rate differentials.

  1. 1. The Carry Trade: From 1990 to 2020

    University essay from

    Author : Adam Bergin; Philip Thorsell; [2020-06-30]
    Keywords : Carry Trade; UIP; CIP; FX-Markets; Premium Puzzle; American Carry trade; Chief dealer back trade;

    Abstract : This thesis examines the carry trade movements from 1990 to 2020. The purpose is to evaluate how an actively managed carry trade has behaved during different market conditions. READ MORE

  3. 2. What causes fluctuations in the exchange rate? A quantitative study on the underlying variables that affects the Swedish Krona and Euro exchange rate

    University essay from Göteborgs universitet/Institutionen för nationalekonomi med statistik

    Author : Oskar Fagerholm; Arien Haghshenas; [2020-02-18]
    Keywords : ;

    Abstract : This paper focuses on analysing the SEK/EURO exchange rate and focuses on testing if 5 specific variables chosen based on previous research affect the SEK/EURO rate. The study uses monthly data from January 2000 to September 2019, the five variables tested are Interest Rate differentials, Inflation Rate differentials, Yield Curve differentials, Implied Volatility Index and the difference in Economic Sentiment. READ MORE

  4. 3. The Riksbank and International Interest Rate Dynamics

    University essay from Göteborgs universitet/Graduate School

    Author : Stefan Lindborg; [2019-10-21]
    Keywords : Interest rate; International Dynamics; Capital Flows; Small Open Econimics; DSGE; Riksbank; Sweden;

    Abstract : Based on the case of Sweden, this thesis studies the relationship between the nominal interest rate in a small open economy and the interest rates of the country's trading partners. Cross-country interest rate differentials affect domestic economic conditions through two channels; the exchange rate channel and via capital flows. READ MORE

  5. 4. 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, Nationalekonomi

    Author : Karl Rohlén; Pontus Ekdahl; [2019]
    Keywords : Uncovered interest parity; interest parity; interbank offering rates; yield to maturity; short-horizon; long-horizon;

    Abstract : 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

  6. 5. A small open economy’s view on interest rate differential’s relation to the nominal exchange rate

    University essay from Linnéuniversitetet/Institutionen för nationalekonomi och statistik (NS)

    Author : Julian Unger; [2017]
    Keywords : Small open economy; uncovered interest rate parity; interest rate differential; nominal exchange rate; short-horizon interest rate; long-horizon interest rate;

    Abstract : The characteristics of interest rate differentials’ relationships with the change in nominal exchange rates are here investigated from the small open economy Sweden’s pointof view. We assume rational expectations and risk neutrality. However, these are solelysufficient but not necessary conditions. READ MORE