Currency risk is one of the two components of the total interest rate differential. Hard pegs, such as currency boards, are meant to reduce or even eliminate currency risk, thus reducing domestic interest rates. This paper investigates the patterns and determinants of the currency risk premium in two currency boards, Argentina and Hong Kong. Despite the presumed rigidity of currency boards, the currency premium is almost always positive and at times...
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详细
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2002/12/01
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日志文章
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83335
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1
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1
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2014/02/18
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Disclosed
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Pricing currency risk under currency boards
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currency premium