Essays about: "long-horizon interest rate"

Found 2 essays containing the words long-horizon interest rate.

1. 1. 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

3. 2. 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