Working Paper Research Department

Accordingly, changes in nominal exchange rates outweigh changes in domestic prices relative to foreign prices in the long run, and real exchange rates exhibit reversion towards

We are particularly interested in (i) the effect on average costs from the increase in electronic payments, (ii) the effect on scale elasticities, and (iii) if new technology,

Turning to the case where we consider only pro…table CIP deviations, the column headed “Pa dev.”reports the number of pro…table arbitrage opportunities out of the total number of

Macroeconomic information is identified to be a determinant of changes in order flow, which implies that exchange rate fluctuations are linked to macroeconomic fundamentals both via

Stock Volatility: Volatility of the stock's returns, estimated using one year of returns, Firm Size: The value of the company's equity, Bid/Ask spread: Relative bid/ask spread (P a P

In addition to implying that there is a full pass-through of long-term US interest rates into the corresponding German rate in the long run, this suggests that monetary policy could

Whereas the Dornbusch’s (1976) exchange rate overshooting hypothesis predicts an instant appreciation of the exchange rate in response to a contractionary monetary policy shock,

The Financials block contain five currency rates and total return and dividend yield for eight different indexes on Oslo Stock exchange, in total 21 variables.. There are