In the presence of deviations from parity conditions such as purchasing power parity and the international Fisher effect, non-financial corporations are confronted with risks stemming from the impact of unexpected exchange rate changes on the value of the firm, especially in the short and the...

At first sight, the idea of investing internationally seems exciting and full of promise because of the many benefits of international portfolio investment. By investing in foreign securities, investors can participate in the growth of other countries, hedge their consumption basket against...

In this paper, we evaluate growth stocks by modeling a company's customer equity. We start with the observation that the number of customers in successful start-ups increases very quickly (exponentially) in the first few years. Then the customer base converges towards an industry average. On the...

How do the risk factors that drive asset prices influence exchange rates? Are the parameters of asset price processes relevant for specifying exchange rate processes? Since most international asset pricing models focus on the analysis of asset returns given exchange rate processes, there is only...

This paper estimates reaction functions for the Federal Reserve and the Deutsche Bundesbank in the dollar-deutschmark market for the period 1979 - 1995 for which empirical studies have so far focused on Federal Reserve interventions. Applying a Logit model we examine whether the intervention...

Confronted with a significant devaluation pressure on the euro, the European Central Bank (ECB) tried in the fall of 2000 to influence the dynamics of the euro through foreign exchange market interventions. In this paper, we analyze the effectiveness of the intervention policy of the ECB. To...

The threat of deflation combined with the zero lower bound on interest rates has recently been intensely debated in economics. The consequences of a deflationary recession are manifold and severe as the Japanese example demonstrates. In this paper, we focus on the potential connections between...

In this paper, we use a structural vector autoregression model to identify and compare demand and supply shocks between euro area countries and central and eastern European countries (CEECs). The shocks and the shock adjustment dynamics of these countries are also compared to EU countries that...