The foreign exchange risk premium: is it real?: An article from: Journal of Money, Credit & Banking

This digital document is an article from Journal of Money, Credit & Banking, published by Ohio State University Press on May 1, 1995. The length of the article is 6304 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.

From the supplier: This paper presents a numerical analysis of an optimizing, equilibrium model of the risk premium in the forward foreign exchange market. An overlapping-generations model with incomplete markets is employed. Because the equilibria are analytically intractable, the model must be solved numerically. We show how changes in the distribution of the exogenous variables affect the distribution of the risk premium. We find that the properties of the real risk premium have far more intuitive appeal than those of the more commonly employed nominal risk premium. (Printed by permission of the publisher.)

Citation Details
Title: The foreign exchange risk premium: is it real?
Author: Craig S. Hakkio
Publication:Journal of Money, Credit & Banking (Refereed)
Date: May 1, 1995
Publisher: Ohio State University Press
Volume: v27 Issue: n2 Page: p301(17)

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