Structured Derivatives Contracts, Hedging Exchange Appreciation and Financial Instability: Brail, China and Korea
There has been a great deal of discussion recently over the use of exchange rates to ameliorate international imbalances. At the same time many developed countries have embarked a highly expansionary monetary policies, expanding the types and amounts of securities held on central bank balance sheets and attempting to use these purchased to alter the shape of the yield curve by buying medium and longer term securities. These two policies are inter-related since effective monetary expansion and zero short term interest rates accompanied by extremely low medium term interest encourage interest rate arbitrage and a reach for yield amongst institutional and retail investors which tends to increase exchange rate volatility and produce unidirectional cumulative movements of exchange rates in surplus countries which may cause substantial financial instability in the countries whose currencies are under pressure to appreciate.
Jan Kregel
Levy Economics Institute of Bard College
国际会议
北京
英文
1-8
2010-11-01（万方平台首次上网日期，不代表论文的发表时间）