The covered interest rate parity (CIP) condition is a fundamental arbitrage relationship in
international finance. In this chapter, we review its breakdown during the Global Financial …

We propose the currency hedging channel that connects countries' external imbalances to
their exchange rate behavior. We present a model in which investors increase their currency …

We study the consequences of “regime-induced” exchange rate depreciations by comparing
outcomes for peggers versus floaters to the US dollar in response to a dollar depreciation …

We use textual analysis of earnings conference calls held by listed firms around the world to
measure the amount of risk managers and investors at each firm associated with each …

This paper develops an open-economy heterogeneous-agent New Keynesian model in
which households differ in their income, wealth, and real and financial integration with …

We develop a novel, risk-based theory of the effects of exchange rate stabilization. In our
model, the choice of exchange rate regime allows policymakers to make their currency, and …

Abstract The integration of Foreign Exchange (FX) and Fixed Income markets has become a
pivotal factor in sha** global financial stability. This paper explores the dynamics of these …

We analyze the impact of COVID‐19 vaccine announcements by leading vaccine
companies on the financial and commodity markets from January to December 2020. We …

We construct new measures of country risk and sentiment as perceived by global investors
and executives using textual analysis of the quarterly earnings calls of publicly listed firms …

Standard asset pricing models reconcile high equity premia with smooth risk-free rates by
inducing an inverse functional relationship between the mean and the variance of the …