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Unwinding RON carry-trade or RON speculative attack?

Author

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  • Silviu Eduard Dinca

    (University of Craiova Faculty of Economics and Business Administration)

Abstract

In the past few years there had been numerous debates on the subject of 2008’ RON speculative attack. This was leading to many articles and commentaries being written, by both academic specialists and banking experts, all of which focusing on 2008’ NBR’s monetary policies undertaken actions and their subsequent effects on the local money markets. However, none of these papers was answering to the basic questions of what, how and why really happened on the interbank and money exchange markets those days. We will be emphasizing herewith some insights to these questions.

Suggested Citation

  • Silviu Eduard Dinca, 2013. "Unwinding RON carry-trade or RON speculative attack?," Finante - provocarile viitorului (Finance - Challenges of the Future), University of Craiova, Faculty of Economics and Business Administration, vol. 1(15), pages 193-205, December.
    • Handle: RePEc:aio:fpvfcf:v:1:y:2013:i:15:p:193-205
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    References listed on IDEAS

    as
    1. Batten, Jonathan A. & Szilagyi, Peter G., 2007. "Covered interest parity arbitrage and temporal long-term dependence between the US dollar and the Yen," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 376(C), pages 409-421.
    2. Fong, Wai-Ming & Valente, Giorgio & Fung, Joseph K.W., 2010. "Covered interest arbitrage profits: The role of liquidity and credit risk," Journal of Banking & Finance, Elsevier, vol. 34(5), pages 1098-1107, May.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    global macro investments; investments leverage; emerging markets; developing economies; international finance; cross-border investments;
    All these keywords.

    JEL classification:

    • E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit
    • F3 - International Economics - - International Finance
    • G01 - Financial Economics - - General - - - Financial Crises
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets

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