Forward premium anomaly

Forward premium anomaly

The forward premium anomaly in currency markets refers to the well documented empirical finding that the domestic currency is expected to appreciate when domestic nominal interest rates exceed foreign interest rates. This is puzzling because economic theory and intuition suggests that international investors would demand higher interest rates on currencies expected to "fall" in value.


Wikimedia Foundation. 2010.

Игры ⚽ Поможем написать реферат

Look at other dictionaries:

  • international relations — a branch of political science dealing with the relations between nations. [1970 75] * * * Study of the relations of states with each other and with international organizations and certain subnational entities (e.g., bureaucracies and political… …   Universalium

  • Margin (finance) — For the 2011 film, see Margin Call. In finance, a margin is collateral that the holder of a financial instrument has to deposit to cover some or all of the credit risk of their counterparty (most often their broker or an exchange). This risk can… …   Wikipedia

  • cañada — /keuhn yah deuh, yad euh/, n. Chiefly Western U.S. 1. a dry riverbed. 2. a small, deep canyon. [1840 50; < Sp, equiv. to cañ(a) CANE + ada n. suffix] * * * Canada Introduction Canada Background: A land of vast distances and rich natural resources …   Universalium

  • Canada — /kan euh deuh/, n. a nation in N North America: a member of the Commonwealth of Nations. 29,123,194; 3,690,410 sq. mi. (9,558,160 sq. km). Cap.: Ottawa. * * * Canada Introduction Canada Background: A land of vast distances and rich natural… …   Universalium

  • Life Sciences — ▪ 2009 Introduction Zoology       In 2008 several zoological studies provided new insights into how species life history traits (such as the timing of reproduction or the length of life of adult individuals) are derived in part as responses to… …   Universalium

  • Eugene Fama — Chicago School Of Economics Eugene Fama (left) winning the inaugural Morgan Stanley American Finance Association Award …   Wikipedia

  • Dividend yield — The dividend yield or the dividend price ratio on a company stock is the company s total annual dividend payments divided by its market capitalization, or the dividend per share, divided by the price per share. It is often expressed as a… …   Wikipedia

  • chess — chess1 /ches/, n. a game played by two persons, each with 16 pieces, on a chessboard. [1150 1200; ME < OF esches, pl. of eschec CHECK1] chess2 /ches/, n., pl. chess, chesses. one of the planks forming the roadway of a floating bridge. [1425 75;… …   Universalium

  • WOMAN — This article is arranged according to the following outline: the historical perspective biblical period marriage and children women in household life economic roles educational and managerial roles religious roles women outside the household… …   Encyclopedia of Judaism

  • Dividend — This article is about financial dividends. For dividends in arithmetic, see Division (mathematics). Accountancy Key concepts Accountant · Accounting period · Bookkeeping · Cash and accrual basis  …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”