Speculation, incomplete currency market participation, and nonfundamental movements in nominal and real exchange rates
Article Abstract:
A study was conducted on alternative approaches that can produce accurate paths for exchange rate movements that are independent of fundamentals using a model which presents price levels and changes in exchange rates. Results show that exchange rates may change independently of fundamentals during certain intervals like movements in money supply and that fundamentals can be used to determine changes in nominal and real exchange rates.
Publication Name: Journal of International Economics
Subject: Economics
ISSN: 0022-1996
Year: 1992
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The Demand for Foreign Bonds
Article Abstract:
A definitive formula to determine the demand for foreign bonds in a general equilibrium model is examined. Foreign bond demand is an increasing function of imports when the product of consumption expenditure for imports and the degree of risk tolerance for the investor is less than one. No restrictions are imposed on the utility function of the investor.
Publication Name: Journal of International Economics
Subject: Economics
ISSN: 0022-1996
Year: 1983
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