The Exchange Rate and the Term Structure of Interest Rates in Mexico PDF Download
Are you looking for read ebook online? Search for your book and save it on your Kindle device, PC, phones or tablets. Download The Exchange Rate and the Term Structure of Interest Rates in Mexico PDF full book. Access full book title The Exchange Rate and the Term Structure of Interest Rates in Mexico by Masao Ogaki. Download full books in PDF and EPUB format.
Author: Masao Ogaki
Publisher:
ISBN:
Category : Foreign exchange
Languages : en
Pages : 24
Get Book Here
Book Description
Author: Masao Ogaki
Publisher:
ISBN:
Category : Foreign exchange
Languages : en
Pages : 24
Get Book Here
Book Description
Author: Hoe Ee Khor
Publisher: International Monetary Fund
ISBN: 1451925387
Category : Business & Economics
Languages : en
Pages : 38
Get Book Here
Book Description
This paper explores how interest rates on domestic financial assets in Mexico are linked to expectations of exchange rate changes and to perceptions about the default risks contained in Mexico’s external debt. It is shown that the interest rate differentials between peso- and U.S. dollar-denominated domestic assets reflected some concerns about the exchange rate policy during the period under study. In addition, the evidence suggests that the interest rate on a U.S. dollar-denominated Mexican domestic asset is linked (i.e., cointegrated) to the yield implicit in the secondary market price for external debt issued by Mexico.
Author: Hoe Khor
Publisher:
ISBN:
Category :
Languages : en
Pages : 38
Get Book Here
Book Description
This paper explores how interest rates on domestic financial assets in Mexico are linked to expectations of exchange rate changes and to perceptions about the default risks contained in Mexico`s external debt.It is shown that the interest rate differentials between peso- and U.S. dollar-denominated domestic assets reflected some concerns about the exchange rate policy during the period under study. In addition, the evidence suggests that the interest rate on a U.S. dollar-denominated Mexican domestic asset is linked (i.e., cointegrated) to the yield implicit in the secondary market price for external debt issued by Mexico.
Author: Ee Khor Hoe
Publisher:
ISBN:
Category : Mexico
Languages : en
Pages : 25
Get Book Here
Book Description
Author: Herminio Blanco
Publisher:
ISBN:
Category : Foreign exchange
Languages : en
Pages : 76
Get Book Here
Book Description
Author: Herminio Blanco
Publisher:
ISBN:
Category :
Languages : en
Pages :
Get Book Here
Book Description
Author:
Publisher:
ISBN:
Category :
Languages : en
Pages :
Get Book Here
Book Description
Author: Jorge G. Gonzalez
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
Get Book Here
Book Description
Can the yield spread, which has been found to predict with surprising accuracy the movement of key macroeconomic variables of developed countries, also predict such variables for a developing country experiencing economic turmoil? This article presents empirical results that suggest significant forecasting ability for the yield spread for segments of the Mexican economy during the 1995-1997 period of economic volatility. The actual and predicted variable changes sometimes conflict with those experienced by developed countries in part because of the unusually close relationship between the Mexican Treasury and the Banco de Mexico. Consequently, analysts and policy officials may exploit the forecast potential of the yield spread, but only in the context of evolving institutional considerations.
Author: Alejandro M. Werner
Publisher: International Monetary Fund
ISBN: 1451846053
Category : Business & Economics
Languages : en
Pages : 24
Get Book Here
Book Description
This paper studies the behavior of interest rate differentials in Mexico during the 1992-94 period. It shows that the currency risk premia is positively related to the share of peso denominated debt in total debt and that the magnitude of this effect is considerable. For every 1 percentage point increase in the ratio of peso denominated debt in total debt, the interest rate differential increases between 20 and 30 basis points. In light of this result, and to get a better measure of the expectation of a devaluation during the period, the observed interest rate differential is adjusted for the change in the composition of public debt. In contrast to the behavior of the interest rate differential, the adjusted measure remained at extremely high levels throughout 1994, signalling a low level of confidence in the announced currency band.
Author: Mr.Paul R. Masson
Publisher: International Monetary Fund
ISBN: 1451929099
Category : Business & Economics
Languages : en
Pages : 36
Get Book Here
Book Description
This paper examines credibility and reputational factors in explaining the December 1994 crisis of the Mexican peso. After reviewing events leading to the crisis, a model emphasizing the inflation-competitiveness trade-off is presented to explain the formation of devaluation expectations. Estimation results indicate that investors appear to have seriously underestimated the risk of devaluation, despite early warning signals. The collapse of confidence that followed the December 20 devaluation may have been the result of a shift in the perceived commitment of the authorities to exchange rate stability.
