Essays about: "uncovered interest parity"

Showing result 11 - 15 of 15 essays containing the words uncovered interest parity.

  1. 11. 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, Nationalekonomi

    Author : Rytis Makauskas; [2012]
    Keywords : current account; Mundell-Flemming model; uncovered interest rate parity; financial account;

    Abstract : 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

  3. 12. Carry Trading & Uncovered Interest Rate Parity : An overview and empirical study of its applications

    University essay from Företagsekonomi; Nationalekonomi

    Author : Farid Tafazoli; Mathias Westman; [2011]
    Keywords : Uncovered Interest Rate Parity; Australian Dollar; Norwegian Kronor; US Dollar; Japanese Yen; Carry Trading;

    Abstract : The thesis examine if the uncovered interest rate parity holds over a 10 year period between Japan and Australia/Norway/USA. The data is collected between February 2001 - December 2010 and is used to, through regression and correlation analysis, explain if the theory holds or not. READ MORE

  4. 13. Can the Endogenization of Regimes Lead to Improved Forecasting of the UIP?

    University essay from Handelshögskolan i Stockholm/Institutionen för finansiell ekonomi

    Author : Jonas Andersson; Anders Johansson; [2010]
    Keywords : Exchange Rate; Forecasting; UIP; Markov Switching; Logit Regression;

    Abstract : Understanding exchange rate movements is key to making positive returns and good decisions when dealing with the currency markets. We try to increase that understanding by using a Markov switching approach to describe deviations from the Uncovered Interest rate Parity (UIP), before investigating what factors that are driving the transitions across regimes. READ MORE

  5. 14. Which model generates the best predictions on the future spot rate?– a comparison between three different forms of the UIP model

    University essay from Lunds universitet/Nationalekonomiska institutionen

    Author : Catrin Jansson; [2006]
    Keywords : Risk Premium; UIP; interest rate; spot rate; prediction error.; Economics; econometrics; economic theory; economic systems; economic policy; Nationalekonomi; ekonometri; ekonomisk teori; ekonomiska system; ekonomisk politik; Business and Economics;

    Abstract : There are many empirical studies that reject the forecasting power of the uncovered interest rate parity condition. This might be due to different reasons, of which one often stated is the existence of a risk premium. READ MORE

  6. 15. Identifying the determinants of exchange rate movements : Evaluating the real interest differential model

    University essay from IHH, Nationalekonomi

    Author : Annsofie Petersson; [2005]
    Keywords : Exchange rate volatility; interest rate differential; money supply; inflation; industrial production;

    Abstract : Trying to find explanations to movements in the exchange rate is something that econo-mists have been dealing with to a great extend lately. Especially since the break down of the Bretton Wood system in the early 1970’s, when many countries introduced a floating sys-tem instead. One of the most famous and often tested models is Jeffery A. READ MORE