Uncovered interest rate parity

After studying this chapter, you should understand: How exchange rates are quoted, what they mean, and the difference between spot and forward exchange rates; purchasing power parity, interest rate parity, unbiased forward rates, uncovered interest rate parity, and the international Fisher effect and their implications for exchange rate changes; the different types of exchange rate risk and ways firms manage exchange rate risk; the impact of political risk on international business investing.

26p thuongdanguyetan03 18-04-2020 21 3   Download

Uncovered interest rate parity (UIRP) provides a crucial theoretical concept for many models in international finance and international monetary economics. Using quarterly data span from 1998Q1 to 2010Q3, we run conventional regressions (OLS) and simple GARCH analysis on UIRP for the case of Malaysia-UK, Malaysia-Japan and Malaysia-Singapore. The empirical results show that these relationships do not support the UIRP in all cases. We, therefore, cannot reject the validity of UIRP violation such as in widely documented literature reviews.

20p nguyenminhlong19 21-04-2020 11 1   Download

Chapter 21, international financial management. After studying this chapter you will be able to: How exchange rates are quoted, what they mean, and the difference between spot and forward exchange rates; purchasing power parity, interest rate parity, unbiased forward rates, uncovered interest rate parity, and the international Fisher effect and their implications for exchange rate changes; the different types of exchange rate risk and ways firms manage exchange rate risk; the impact of political risk on international business investing.

50p shiwo_ding6 25-05-2019 22 3   Download

Chương 5 trình bày về "Học thuyết ngang giá lãi suất". Nội dung cụ thể của chương này gồm có: Tiêu chí lựa chọn đồng tiền đầu tư và đi vay, quy luật ngang giá lãi suất có bảo hiểm (CIP - Covered Interest Rate Parity), quy luật ngang giá lãi suất không có bảo hiểm (UIP – Uncovered Interest Rate Parity), hiệu ứng Fisher Quốc tế, nhân tố tác động tới tỷ giá.

21p dongdong321 07-06-2018 69 6   Download

The goals of this chapter are: To explain the concept of market efficiency, to describe the UIP condition, to assess the empirical validity of UIP, to explain the concept of the real interest rate and derive real interest parity (RIP).

26p nomoney2 10-02-2017 43 5   Download

Austro-Hungarian Empire, these Central European countries form a compact group with strong cultural and historical links, except for the fact that Austria does not share a communist history as a Soviet satellite like the other four do. As a result, there are important similarities in consumption habits and needs, 5 in views about the role of money, and in the ultimate behavior of bank clients in relation to banks.

56p taisaovanchuavo 23-01-2013 67 4   Download

The table's second row indicates that the yield gain due to higher issuing volume would be in the range of 10 to 20 basis points for the euro area, depending on the credit rating achieved, but rather independent on whether the historical or recent market conditions were used. The corresponding gain in the yield for Germany would be around 7 basis points. The simulations demonstrate that the expected gain in the liquidity premium is rather limited and decreases for Member States that already benefit from the highest rating.

49p enter1cai 16-01-2013 45 3   Download