In this paper, we derive the dynamics and assess the economic value of currency speculation by formalizing the concept of a trader inaction range. We show that exchange rate returns comprise a time-varying risk-premium and that uncovered interest parity (UIP) holds in a speculative sense. The...

We study the properties of foreign exchange risk premia that can explain the forward bias puzzle - the tendency of high-interest rate currencies to appreciate rather than depreciate. These risk premia arise endogenously from imposing the no-arbitrage condition on the relation between the term...

We study the properties of foreign exchange risk premiums that can explain the forward bias puzzle, defined as the tendency of high-interest rate currencies to appreciate rather than depreciate. These risk premiums arise endogenously from imposing the no-arbitrage condition on the relation...

We are dealing with the ruin probability and the expected ruin time in a two state Markov model ...

Foreign exchange market efficiency is commonly investigated by Fama-regression tests of uncovered interest parity (UIP). In this paper, we conjecture a speculative UIP relationship which implies that exchange rate changes comprise a time-varying risk component in addition to the forward...

In 2000, the Strategic Partnership between India and Germany symbolised new-found commonalities shared by the countries in the era of globalisation. More than two decades later, the agreement requires an upgrade in order to address the changing international, regional and national dynamics. This...

Im Sommer 2022 haben die Europäische Union (EU) und Indien erneut Verhandlungen über ein Freihandelsabkommen aufgenommen, um ihre strategische Partnerschaft zu vertiefen. Darüber hinaus verhandeln die beiden Seiten über ein Investitionsschutzabkommen sowie ein Abkommen zum Schutz...

In summer 2022, the European Union (EU) and India resumed negotiations on a free trade agreement to strengthen their strategic partnership. In addition, both sides are negotiating an investment protection agreement and an agreement on the protection of geographical indications. In this way, the...

Die Spannungen in der Weltwirtschaft und die Sorge um eine zu starke wirtschaftliche Abhängigkeit Europas von China rücken Indien in den Blickpunkt. Dort leben knapp 18 % der Weltbevölkerung in einer demokratischen Staatsform. Allerdings beträgt die Größe des Marktes bestenfalls ein...