A Dynamic Theory of Forward Exchange

Front Matter....Pages i-xxvi
Introductory....Pages 1-14
Front Matter....Pages 15-15
The Forward Exchange Market Today....Pages 17-32
Post-War Techniques and Practices....Pages 33-51
Covering of Commercial Exchange Risk....Pages 52-69
Covered and Uncovered Foreign Balances....Pages 70-81
Hedging Against Exchange Risk....Pages 82-93
Speculative Transactions....Pages 94-108
Arbitrage Transactions....Pages 109-120
Front Matter....Pages 121-121
Need for a Dynamic Forward Exchange Theory....Pages 123-131
Evolution of Forward Exchange Theory....Pages 132-143
The Interest Parity Theory....Pages 144-161
Adjustment of Forward Rates to Interest Parities....Pages 162-175
Abnormal Intrinsic Premium or Discount....Pages 176-186
Impact of Forward Margins on Interest Rates....Pages 187-204
The Purchasing Power Parity Theory of Forward Exchange....Pages 205-213
Balance of Payments and Forward Exchange....Pages 214-224
Impact of Foreign Lending on Forward Exchange....Pages 225-236
Relationship Between Spot and Forward Rates....Pages 237-247
Long v. Short Forward Rates....Pages 248-257
Dynamic Effect of Triangular Forward Operations....Pages 258-264
Front Matter....Pages 121-121
The Static Theory....Pages 265-274
The Dynamic Theory....Pages 275-283
Front Matter....Pages 285-285
Forward Sterling....Pages 287-311
The Forward Dollar....Pages 312-330
The Forward Franc....Pages 331-346
The Forward Mark, Reichsmark and Deutschemark....Pages 347-356
The Forward Lira....Pages 357-365
The Forward Swiss Franc....Pages 366-369
The Forward Guilder....Pages 370-374
The Forward Belgian Franc....Pages 375-378
Front Matter....Pages 379-379
Scope and Methods of Official Forward Exchange Operations....Pages 381-391
The Keynes Proposals....Pages 392-401
Intervention in the Forward Rouble Market....Pages 402-404
Forward Rate Policy of the Austro-Hungarian Bank....Pages 405-419
Kostdevisen Operations of the Austrian National Bank....Pages 420-428
German Forward Exchange Policies....Pages 429-438
Forward Exchange Operations of the Bank of France....Pages 439-452
Italian Forward Exchange Policy....Pages 453-459
Spanish Government Borrowing Through Swap Transactions....Pages 460-463
British Defensive Interventions....Pages 464-479
Front Matter....Pages 379-379
Netherlands Bank’s Tactics....Pages 480-485
Belgian Official Policy....Pages 486-490
American Forward Exchange Policy....Pages 491-496
Official Forward Exchange Facilities for Trade....Pages 497-504
The Case for Unlimited Defensive Intervention....Pages 505-514
The Case Against Unlimited Defensive Intervention....Pages 515-530
Experiment in Unlimited Intervention, 1964–66....Pages 531-546
Practical Possibilities of a Forward Rate Policy....Pages 547-560
The Technique of Forward Rate Policy....Pages 561-573
Conclusion....Pages 574-584
Back Matter....Pages 585-601