Bond issuers frequently immunize/hedge their interest rate exposure by means of interest rate swaps (IRS). The receiving leg matches all bond cash-flows, while the pay leg requires floating rate coupon payments of form LIBOR + a spread. The goal of hedging against interest rate risk is only...

A key challenge for monetary policymakers is predicting the path of short-term inflation given the persistently flat Phillips curve of the last few years. A promising innovation involves modifying the hybrid-New Keynesian Phillips curve (NKPC) to include an interaction variable, reflecting the...

The current state of the art in the central bank digital currency (CBDC) literature views indexes constructed from digital currency news to be fully informed about CBDC uncertainty and its impact on the financial system. We argue that the hedging behavior of participants in the currency futures...