Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/32058
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dc.contributor.authorRöthig, Andreasen_US
dc.contributor.authorSemmler, Willien_US
dc.contributor.authorFlaschel, Peteren_US
dc.date.accessioned2006-05-04en_US
dc.date.accessioned2010-05-14T11:56:52Z-
dc.date.available2010-05-14T11:56:52Z-
dc.date.issued2006en_US
dc.identifier.urihttp://hdl.handle.net/10419/32058-
dc.description.abstractThis paper explores the linkage between corporate risk management strategies, investment, and economic stability in an open economy with a flexible exchange rate regime. Firms use currency futures contracts to manage their exchange rate exposure - caused by balance sheet effects as in Krugman (2000) - and therefore their investments' sensitivity to currency risk. 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 substantially affect economic stability on the macrolevel.
dc.language.isoeng
dc.publisher|aTechnische Universität Darmstadt, Institut für Volkswirtschaftslehre |cDarmstadt
dc.relation.ispartofseries|aDarmstadt Discussion Papers in Economics|x168
dc.subject.jelE32en_US
dc.subject.jelE44en_US
dc.subject.jelF31en_US
dc.subject.jelF41en_US
dc.subject.ddc330
dc.subject.keywordMundell-Fleming-Tobin modelen_US
dc.subject.keywordforeign-debt financed investmenten_US
dc.subject.keywordcurrency crisesen_US
dc.subject.keywordreal crisesen_US
dc.subject.keywordcurrency futuresen_US
dc.subject.keywordhedgingen_US
dc.subject.keywordspeculationen_US
dc.subject.stwHedgingen_US
dc.subject.stwWährungskriseen_US
dc.subject.stwRisikomanagementen_US
dc.subject.stwFlexibler Wechselkursen_US
dc.subject.stwTheorieen_US
dc.titleHedging, speculation, and investment in balance-sheet triggered currency crises
dc.typeWorking Paper
dc.identifier.ppn511221908en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen
dc.identifier.repecRePEc:zbw:darddp:dar_25377-

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