Search: exchange rates

Help
Contents
Metadata
Published
Display
per page
Results from
Sort by: Relevance Date
1–10 of 11 collapsed search results for exchange rates

RBA Glossary definition for exchange rates

exchange rates – The price of one currency expressed in terms of another currency. Any exchange rate can be quoted two ways, e.g. Australian dollars per US dollar (USD/AUD) or US dollars per Australian dollar (AUD/USD). The convention for the Australian dollar is that it is quoted as the foreign currency price of the Australian dollar. This is sometimes referred to as the 'Indirect' method of quoting.

Search Results

Equilibrium Exchange Rates and a Popular Model of International Asset Demands: An Inconsistency

1 Jul 1986 RDP 8610
Robert G. Trevor
Research Discussion Papers contain the results of economic research within the Reserve Bank
https://www.rba.gov.au/publications/rdp/1986/8610.html

Equilibrium Exchange Rates and a Popular Model of International Asset Demands: An Inconsistency

1 Jul 1986 RDP 8610
Robert G. Trevor
Research Discussion Paper – RDP 8610 Equilibrium Exchange Rates and a Popular Model of International Asset Demands: An Inconsistency.
https://www.rba.gov.au/publications/rdp/1986/8610/

The General Case

1 Jul 1986 RDP 8610
Robert G. Trevor
Proposition 2: The market clearing exchange rate process cannot have an idiosyncratic risk (dz) component. ... Proposition 3: The market clearing exchange rate process cannot be geometric Brownian motion.
https://www.rba.gov.au/publications/rdp/1986/8610/general-case.html

Introduction

1 Jul 1986 RDP 8610
Robert G. Trevor
RDP 8610: Equilibrium Exchange Rates and a Popular Model of International Asset Demands: An Inconsistency 1. ... Moreover, real exchange rates do not posses idiosyncratic risk – instantaneous exchange rate risk is no more than a combination of the
https://www.rba.gov.au/publications/rdp/1986/8610/introduction.html

References

1 Jul 1986 RDP 8610
Robert G. Trevor
RDP 8610: Equilibrium Exchange Rates and a Popular Model of International Asset Demands: An Inconsistency References. ... XI, 573–577. Kouri, P.J.K. (1977). International Investment and Interest Rate Linkages Under Flexible Exchange Rates.
https://www.rba.gov.au/publications/rdp/1986/8610/references.html

The Model

1 Jul 1986 RDP 8610
Robert G. Trevor
RDP 8610: Equilibrium Exchange Rates and a Popular Model of International Asset Demands: An Inconsistency 2. ... However, it will play no role in determining the variance/covariance properties of the real exchange rate.
https://www.rba.gov.au/publications/rdp/1986/8610/model.html

Concluding Observations

1 Jul 1986 RDP 8610
Robert G. Trevor
The equilibrium real exchange rate stochastics can only be a function of these risks. ... In that case, the assumption of smooth continuous processes for exchange rates would be inappropriate.
https://www.rba.gov.au/publications/rdp/1986/8610/concluding-observations.html

Example: Many Assets

1 Jul 1986 RDP 8610
Robert G. Trevor
RDP 8610: Equilibrium Exchange Rates and a Popular Model of International Asset Demands: An Inconsistency 5. ... e., that the real exchange rate dz may be expressed as a function of the asset price dz's.
https://www.rba.gov.au/publications/rdp/1986/8610/example-many-assets.html

Appendix: Derivation of Continuous Time Constraints

1 Jul 1986 RDP 8610
Robert G. Trevor
RDP 8610: Equilibrium Exchange Rates and a Popular Model of International Asset Demands: An Inconsistency Appendix: Derivation of Continuous Time Constraints. ... th. home asset in the home (foreign) currency and e is the real (deflated) exchange rate.
https://www.rba.gov.au/publications/rdp/1986/8610/appendix.html

Example: Two Risky Assets

1 Jul 1986 RDP 8610
Robert G. Trevor
RDP 8610: Equilibrium Exchange Rates and a Popular Model of International Asset Demands: An Inconsistency 4. ... the equilibrium real exchange rate cannot be represented by a geometric Brownian motion process with an idiosyncratic risk component.
https://www.rba.gov.au/publications/rdp/1986/8610/example-two-risky-assets.html