. We find that, depending on whether futures contracts are used for risk reduction (i.e., hedging) or risk taking (i ….e., speculation), the implied magnitudes of recessions and booms are decreased or increased. Corporate risk management can therefore …

We examine the impact of corporate currency hedging on economic stability by introducing hedging activity in a Mundell … size as well as hedging costs. The results indicate that, with an increasing fraction of hedged firms in an economy, the … magnitude of a crisis decreases and from a specific hedging level onwards currency crises are ruled out. In order to improve …

. We find that, depending on whether futures contracts are used for risk reduction (i.e., hedging) or risk taking (i ….e., speculation), the implied magnitudes of recessions and booms are decreased or increased. Corporate risk management can therefore …

We document the exchange rate hedging channel that connects country-level measures of net external financial imbalances … movements. We present a model demonstrating that exchange rate hedging coupled with intermediary constraints can explain these … currency hedging channel of exchange rate determination in both the conditional and unconditional moments of exchange rates …

between large and small traders, and an upper bound of total speculation. To account for the large number of testable …

. This exposure is most striking when a nonparametric model is used. We also find that firms' hedging activities decrease …

also find evidence that firms' hedging activities decrease linear exposure but do not affect nonparametric exposure. …

We analyze the contribution of speculation to exchange rate volatility using different assumptions regarding … speculation strategies and monetary policy rules. We take the DORNBUSCH (1976) model as the starting point and adopt a slight … modification of the money demand specification. With a money supply rule, rational speculation dampens the overshooting of the …