克鲁格曼-国际经济学第10版-英文答案-国际金融部分krugman-intlecon10-im-14

©2015PearsonEducationLimitedChapter14(3)ExchangeRatesandtheForeignExchangeMarket:AnAssetApproachChapterOrganizationExchangeRatesandInternationalTransactionsDomesticandForeignPricesExchangeRatesandRelativePricesTheForeignExchangeMarketTheActorsBox:ExchangeRates,AutoPrices,andCurrencyWarsCharacteristicsoftheMarketSpotRatesandForwardRatesForeignExchangeSwapsFuturesandOptionsTheDemandforForeignCurrencyAssetsAssetsandAssetReturnsBox:NondeliverableForwardExchangeTradinginAsiaRiskandLiquidityInterestRatesExchangeRatesandAssetReturnsASimpleRuleReturn,Risk,andLiquidityintheForeignExchangeMarketEquilibriumintheForeignExchangeMarketInterestParity:TheBasicEquilibriumConditionHowChangesintheCurrentExchangeRateAffectExpectedReturnsTheEquilibriumExchangeRateInterestRates,Expectations,andEquilibriumTheEffectofChangingInterestRatesontheCurrentExchangeRateTheEffectofChangingExpectationsontheCurrentExchangeRateCaseStudy:WhatExplainstheCarryTrade?SummaryAPPENDIXTOCHAPTER14(3):ForwardExchangeRatesandCoveredInterestParityChapterOverviewThepurposeofthischapteristoshowtheimportanceoftheexchangerateintranslatingforeignpricesintodomesticvaluesaswellastobeginthepresentationofexchangeratedetermination.Centraltothetreatmentofexchangeratedeterminationistheinsightthatexchangeratesaredeterminedinthesamewayasotherassetprices.Thechapterbeginsbydescribinghowtherelativepricesofdifferentcountries’goodsareaffectedbyexchangeratechanges.Thisdiscussionillustratesthecentralimportanceofexchangeratesforcross-bordereconomiclinkages.Thedeterminationoftheleveloftheexchangerateismodeledinthecontextoftheexchangerate’sroleastherelativepriceofforeignanddomesticcurrencies,usingtheuncoveredinterestparityrelationship.Theeuroisusedofteninexamples.Somestudentsmaynotbefamiliarwiththecurrencyorawareofwhichcountriesuseit;abriefdiscussionmaybewarranted.AfulltreatmentofEMUandthetheoriessurroundingcurrencyunificationappearsinChapter20(9).Thedescriptionoftheforeignexchangemarketstressestheinvolvementoflargeorganizations(commercialbanks,corporations,nonbankfinancialinstitutions,andcentralbanks)andthehighlyintegratednatureofthemarket.Thenatureoftheforeignexchangemarketensuresthatarbitrageoccursquicklysothatcommonratesareofferedworldwide.Acomparisonofthetradingvolumeinforeignexchangemarketstothatinothermarketsisusefultounderscorehowquicklypricearbitrageoccursandequilibriumisrestored.Forwardforeignexchangetrading,foreignexchangefuturescontracts,andforeignexchangeoptionsplayanimportantpartincurrencymarketactivity.Theuseofthesefinancialinstrumentstoeliminateshort-runexchangerateriskisdescribed.Theexplanationofexchangeratedeterminationinthischapteremphasizesthemodernviewthatexchangeratesmovetoequilibrateassetmarkets.Theforeignexchangedemandandsupplycurvesthatintroduceexchangeratedeterminationinmostundergraduatetextsarenotfoundhere.Instead,thereisadiscussionofassetpricingandthedeterminationofexpectedratesofreturnonassetsdenominatedindifferentcurrencies.Studentsmayalreadybefamiliarwiththedistinctionbetweenrealandnominalreturns.Thetextdemonstratesthatnominalreturnsaresufficientforcomparingtheattractivenessofdifferentassets.Thereisabriefdescriptionoftheroleplayedbyriskandliquidityinassetdemand,buttheseconsiderationsarenotpursuedinthischapter.(TheroleofriskistakenupagaininChapter18[7].)Substantialspaceisdevotedtothetopicofcomparingexpectedreturnsonassetsdenominatedindomesticandforeigncurrency.Thetextidentifiestwopartsoftheexpectedreturnonaforeigncurrencyasset(measuredindomesticcurrencyterms):theinterestpaymentandthechangeinthevalueoftheforeigncurrencyrelativetothedomesticcurrencyovertheperiodinwhichtheassetisheld.Theexpectedreturnonaforeignassetiscalculatedasafunctionofthecurrentexchangerateforgivenexpectedvaluesofthefutureexchangerateandtheforeigninterestrate.Theabsenceofriskandliquidityconsiderationsimpliesthattheexpectedreturnsonallassetstradedintheforeignexchangemarketmustbeequal.Itisthusashortstepfromcalculationsofexpectedreturnsonforeignassetstotheinterestparitycondition.Theforeignexchangemarketisshowntobeinequilibriumonlywhentheinterestparityconditionholds.Thus,forgiveninterestratesandgivenexpectationsaboutfutureexchangerates,interestparitydeterminesthecurrentequilibriumexchangerate.Theinterestparitydiagramintroducedhereisinstrumentalinlaterchaptersinwhichamoregeneralmodelispresented.Becauseacommandofthisinterestparitydiagramisanimportantbuildingblockforfuturework,werecommenddrillsthatemploythisdiagram.Theresultthatadollarappreciationmakesforeigncurrencyassetsmoreattractivemayappearcounterintuitivetostudents—whydoesastrongerdollarreducetheexpectedreturnondollarassets?Thekeytoexplainingthispointisthat,underthestaticexpectationsandconstantinterestratesassumptions,adollarappreciationtodayimpliesagreaterfuturedollardepreciation;so,anAmericaninvestorcanexpecttogainnotonlytheChapter14ExchangeRatesandtheForeignExchangeMarket:AnAssetApproach77©2015PearsonEducationLimitedforeigninterestpaymentbutalsotheextrareturnduetothedollar’sadditionalfuturedepreciation.Thefollowingdiagramillu