In an intertemporal model the impact of exchange rate risk on an international firm is studied under the assumption that no forward markets are existing in the foreign currency. However, there is a forward traded financial asset, whose spot price is highly correlated with the random spot exchange ra
✦ LIBER ✦
Exports and hedging exchange rate risks: the multi-country case
✍ Scribed by Axel F. A. Adam-Müller
- Publisher
- John Wiley and Sons
- Year
- 2000
- Tongue
- English
- Weight
- 142 KB
- Volume
- 20
- Category
- Article
- ISSN
- 0270-7314
No coin nor oath required. For personal study only.
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## Abstract This paper compares the response of inflation to changes in exchange rate competitiveness in various regions of the world. The paper first presents evidence that an empirical relationship between the __rate__ of inflation and the __level__ of the real exchange rate holds for a large set