International currency exposure / edited by Yin-Wong Cheung and Frank Westermann.

Format:

Book

Contributor:

John Lammey Stewart Memorial Library Fund.

Cheung, Yin-Wong, editor.

Westermann, Frank, 1970- editor.

Series:

CESifo seminar series

CESifo Seminar Series

Language:

English

Subjects (All):

Foreign exchange rates.

International finance.

Currency crises.

Physical Description:

vi, 313 pages : illustrations ; 24 cm.

Place of Publication:

Cambridge, MA : MIT Press, [2017]

Summary:

The foreign currency denomination of contracts in international transactions can lead to international currency exposure at the country level with important economic and policy implications. When debts are denominated in foreign currency and revenues in domestic currency, exchange rate fluctuations can result in balance sheet effects for countries with either net asset or liability positions. Moreover, currency mismatch between assets and liabilities can be a cause for crises in developing and emerging economies. This book looks at the issues surrounding foreign currency exposure in today's increasingly integrated world economy. The contributors draw on cross-country as well as country-specific data. They consider international currency risk after the Swiss franc ended its one-sided peg with the euro, for example, and the foreign exchange positions of firms in Turkey and Russia. Other contributors take macroeconomic perspectives, examining the potential effects of exchange rate realignment, the pressure to appreciate on countries with current account surpluses, and the currency exposure in international trade. Finally, contributors consider the issue from finance and political economy perspectives, addressing the phenomenon of the forward premium puzzle and discussing geopolitical aspects ascending currencies.-- Provided by Publisher.

Contents:

Toward a behavioral theory of the exchange rate / Paul De Grauwe

Cross-country exposures to the Swiss franc / Agustin S. Bénétrix and Philip R. Lane

On the roles of different foreign currencies in European bank lending / Signe Krogstrup and Cedric Tille

Understanding exchange rate exposure through net foreign exchange position channel / Fatih Altunok, Huseyin Aytug, and Arif Oduncu

Strategic currency choice in international trade / Maria V. Sokolova

Probablility of a currency crash and postcrash output performance : do exchange rate regimes matter? / Juann H. Hung

Foreign currency denominated assets and international shock absorption in Europe and East Asia / Gunther Schnabl

External debt and international trade : another mismatch / Eiji Fujii

Assessing the forward premium puzzle : a factor-augmented panel data approach / Jörg Breitung and Katja Mann

The geopolitics of ascending global currencies / Peter Garber.

Notes:

Includes bibliographical references and index.

Local Notes:

Acquired for the Penn Libraries with assistance from the John Lammey Stewart Memorial Library Fund.

ISBN:

9780262036405

0262036401

OCLC:

978286397

Publisher Number:

99978965604

40027464023