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http://hdl.handle.net/10419/27646
  

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dc.contributor.authorLane, Philip R.en_US
dc.contributor.authorShambaugh, Jay C.en_US
dc.coverage.temporal1990-2004en_US
dc.date.accessioned2009-08-12T07:30:03Z-
dc.date.available2009-08-12T07:30:03Z-
dc.date.issued2008en_US
dc.identifier.urihttp://hdl.handle.net/10419/27646-
dc.description.abstractOur goal in this project is to gain a better empirical understanding of the international financial implications of currency movements. To this end, we construct a database of international currency exposures for a large panel of countries over 1990-2004. We show that trade-weighted exchange rate indices are insufficient to understand the financial impact of currency movements. We show that our currency measure has high explanatory power for the valuation term in net foreign asset dynamics: exchange rate valuation shocks are sizable, not quickly reversed and may entail substantial wealth redistributions. Further, we demonstrate that many developing countries hold short foreign-currency positions, leaving them open to negative valuation effects when the domestic currency depreciates. However, we also show that many of these countries have substantially reduced their foreign currency exposure over the last decade.en_US
dc.language.isoengen_US
dc.relation.ispartofseriesDiscussion paper Series 1 / Volkswirtschaftliches Forschungszentrum der Deutschen Bundesbank 2008,22en_US
dc.subject.jelF31en_US
dc.subject.jelF32en_US
dc.subject.ddc330en_US
dc.subject.keywordFinancial integrationen_US
dc.subject.keywordcapital flowsen_US
dc.subject.keywordexternal assets and liabilitiesen_US
dc.subject.stwDevisenmarkten_US
dc.subject.stwDevisenhandelen_US
dc.subject.stwWährungsreservenen_US
dc.subject.stwWechselkurspolitiken_US
dc.subject.stwWelten_US
dc.titleFinancial exchange rates and international currency exposuresen_US
dc.typeWorking Paperen_US
dc.identifier.ppn589839810en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
dc.identifier.repecRePEc:zbw:bubdp1:7561-
Appears in Collections:Discussion Paper Series 1: Economic Studies, Deutsche Bundesbank

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