Currency prices, terms of trade, and interest rates: A general equilibrium asset-pricing cash-in-advance approach
TLDR
Currency Prices, Terms of Trade, and Interest Rates: A General Equilibrium Asset-Pricing Cash-in-Advance Approach as mentioned in this paper is a general equilibrium asset-pricing approach.About:
This article is published in Journal of International Economics.The article was published on 1985-02-01 and is currently open access. It has received 170 citations till now. The article focuses on the topics: General equilibrium theory & Interest rate.read more
Citations
More filters
Posted Content
The Forward Discount Anomaly and the Risk Premium: A Survey of Recent Evidence
TL;DR: A survey of advances in this area since the publication of Hodrick's (1987) survey is presented in this paper, with a focus on the relationship between uncovered interest parity and real interest parity.
Journal ArticleDOI
The forward discount anomaly and the risk premium: A survey of recent evidence
TL;DR: A survey of advances in this area since the publication of Hodrick's (1987) survey is presented in this article, with a focus on the relationship between uncovered interest parity and real interest parity.
ReportDOI
Puzzles in International Financial Markets
Karen K. Lewis,Karen K. Lewis +1 more
TL;DR: This paper presented a survey of two basic puzzles in international finance, including the "predictable excess return puzzle" and the "home bias puzzle" that domestic residents do not diversify sufficiently into foreign stocks.
Book ChapterDOI
Monetary and Portfolio-Balance Models of Exchange Rate Determination
TL;DR: A survey of empirical models of the 1970s, published in Economic Interdependence and Flexible Exchange Rates, edited by J. Bhandari (M.I.T. Press: Cambridge), in 1983, is here supplemented with a brief epilogue to update the literature to 1987 as mentioned in this paper.
Journal ArticleDOI
Money and Asset Prices in a Cash-in-Advance Economy
TL;DR: In this article, an asset-pricing model with money introduced via a cash-in-advance constraint is presented, where monetary velocity is variable and money demand does not obey the trivial quantity equation.
References
More filters
Journal ArticleDOI
Asset prices in an exchange economy
TL;DR: In this article, the authors examine the stochastic behavior of equilibrium asset prices in a one-good, pure exchange economy with identical consumers, and derive a functional equation for price as a function of the physical state of the economy.
Journal ArticleDOI
Optimal fiscal and monetary policy in an economy without capital
Robert E. Lucas,Nancy L. Stokey +1 more
TL;DR: In this paper, the structure and time-consistency of optimal fiscal and monetary policy in an economy without capital are investigated. And the main finding is that with debt commitments of sufficiently rich maturity structure, an optimal policy, if one exists, is time-Consistent.
Journal ArticleDOI
International Portfolio Choice and Corporation Finance: A Synthesis
Michael Adler,Bernard Dumas +1 more
TL;DR: In this article, the authors focus on international portfolio choice and corporation finance, and present a micro-theory of individual portfolio choice; equilibrium pricing relationships and risk-return tradeoffs; Objectives for value maximizing firms.
Journal ArticleDOI
Interest rates and currency prices in a two-country world
TL;DR: In this paper, a theoretical study of the determination of prices, interest rates and currency exchange rates, set in an infinitely-lived two-country world which is subject both to stochastic endowment shocks and to monetary instability, is presented.