The currency exchange rates that we see and use every day are nominal exchange rates. They tell us what we get if we swap a unit of one currency for another – for example, a pound-dollar exchange rate ...

This course gives a comprehensive overview of exchange rate analysis and policy. It explores key exchange rate concepts (real, nominal, bilateral, multilateral, spot, forward) and arbitrage conditions ...

Most countries hold large gross asset positions, lending in domestic currency and borrowing in foreign. Thus, their balance sheets are exposed to nominal exchange rates. We argue that when asset ...

We study the endogenous choice to accept fiat objects as media of exchange and their implications for nominal exchange rate determination. We consider a two-country environment with two currencies ...

Exchange rate pass‐through refers to the extent to which fluctuations in the nominal exchange rate affect domestic prices—both at the producer and consumer levels. This dynamic plays a pivotal role in ...

Interest rates play a critical role in shaping the values of different currencies. Central banks worldwide utilize interest rates as a monetary policy tool to manage their economies, making it ...