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We study the effects of U.S. monetary policy shocks on the bilateral exchange rate between the U.S. and each of the G7 countries. We also estimate deviations from uncovered interest rate parity and exchange rate pass-through conditional on these shocks. The analysis is based on a structural...
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This paper examines the currency manipulation policy in the foreign exchange markets of thirteen emerging countries …
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the high-yield currency. However high-yield currencies tend to appreciate, at least in the short run, which implies … predictable currency excess returns and trading profitability. The carry trade, buying high-interest currencies and selling low … that explanations of UIRP failures have to be analytical but they remain elusive. Currency asset managers and hedge funds …
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