Does Incomplete Spanning in International Financial Markets Help to Explain Exchange Rates?
© 2019 American Economic Association. All rights reserved. We assume that domestic ( foreign) agents, when investing abroad, can only trade in the foreign (domestic) risk- free rates. In a preference-free environment, we derive the exchange rate volatility and risk premia in any such incomplete span...
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| Format: | Article |
| Language: | English |
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American Economic Association
2021
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| Online Access: | https://hdl.handle.net/1721.1/136514 |