PPT-International Finance Forecasting Exchange Rates

1 Why Firms Forecast XRs Hedging decisions Hedging payables and receivables Shortterm financing decisions Which currency to borrow in Low rate weakening currency 2 Why Firms Forecast XRs Shortterm investment decisions. 2. Exchange Rate Essentials. Exchange Rates in Practice. The Market for Foreign Exchange. Arbitrage and Spot Exchange . Rates. . Arbitrage . and . Interest Rates. Conclusions. © 2014 Worth Publishers . course. 723g33. International Parity Conditions. ESM . chapter. 7. yinghong.chen@liu.se PhD in Finance. 7-. 1. International Parity Conditions. Managers . Lecture 12: Trade Policy – . The Developing World. Overview. Exports and imports. International trade theory: Criticisms. International trade: Initial conclusions for developing economies. Import substitution v. Export promotion. Slide Set . 1. Introduction to . the Course: the Global Economy. Introduction to the Global . Macroeconomy. Our course can be divided across three broad topics:. Foreign exchange: currencies, exchange rates, and crises. course. . 723g33. Chap 7 International Parity Conditions. 7-. 1. yinghong.chen@liu.se PhD in Finance. International Parity Conditions. Q: What are the . determinants. of exchange rates? Are . changes. Are changes in exchange rates predictable?. How are exchange rates related to interest rates?. What, at least theoretically, is the “proper” . exchange rate?. To answer these questions we need to first understand the economic fundamentals of international finance, known as . Professor Malamud. BEH 502 895 – 3294 . Email: . bernard.malamud@unlv.edu. Website: . http://faculty.unlv.edu/bmalamud. . Office . Hours:TTh. 1 – 2 pm. ; . 4 – 5 pm. ; and by appointment. International Monetary Relations. Why do some countries choose to fix. and others to float? Why do they. change their minds at different times?. These are among the most enduring and controversial questions in international macroeconomics.. Chapter 26. McGraw-Hill/Irwin. Copyright © . 2015 . by . McGraw-Hill Education (Asia). . All rights reserved.. Learning Objectives. Define the nominal exchange rate and discuss the advantages and disadvantages of flexible versus fixed exchange rates. the Foreign Exchange Market. Foreign Exchange Market. Foreign Exchange Market. Foreign Exchange market. :. Market . where different currencies are traded, one for another.. The exchange rate enables people in one country to translate . Two Episodes:. Currency Board and 2001 Crisis . (. Sturzeneger. talk/ . Feentra. Taylor, other). “. Cepo. ” and Normalization of Jan 2016 (MM Blog, other). Some definitions:. Nominal Exchange Rate: E= # pesos per dollar. Ahmad. Faculty of . Administrative . Sciences . and . Economics. Exchange . Rates and the Foreign Exchange Market:. An Asset Approach. International Economics II. Slide . 13-1. Slide 13-. 2. Introduction. Larry Schrenk, Instructor. Video 8.4 . International Fisher Effect II. 1. Summary. 2. Interest Rate Parity. . interest rates (. i. ) → forward rate. Purchasing Power Parity. . inflation (I) → forward rate. Pravin. Kumar . Agrawal. Assistant Professor. Department of Business Management. CSJMU. Why Firm Forecast Exchange rates. MNCs need exchange rate forecasts for their:. Hedging Decisions: if the exchange rate remain stable then they will not hedge.