We offer a unifying empirical model of covered and uncovered currency premia, interest rates and spot and forward exchange rates, both in the cross section and time series of currencies. We find that ...

Currency conversion is a crucial aspect of international travel, overseas business, and global financial transactions.

This paper estimates, for the first time, the exchange rate elasticity of bilateral trade in services, providing indirect evidence of both producer currency pricing and dominant currency pricing in ...

Discover how central banks manage currency values through dirty floats, stabilizing economies by intervening in exchange rates to mitigate economic shocks.