Exchange Rates, Interest Rates, and the Risk Premium

311 citations recorded by the source corpus.

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

Inflation and exchange rate pass-through (2019, background): “Monetary policy easing can also lead to currency depreciations, as a declining interest rate differential with the rest of the world tends to put downward pressure on the domestic currency (Chinn and Meredith 2005; Engel 2016).”
Unconventional Monetary Policy and International Risk Premia (2016, background): “Brunnermeier et al. (2009) and Farhi and Gabaix (2014) find that risk-reversals imply that the distribution of future exchange rate returns is skewed in the direction of depreciation of high interest currencies.”