The Country Risk and the nominal exchange rate between Peru and the United States. An approach through a model of asset markets for determining the exchange rate. (1998:12 - 2007:12)
This paper tries to explain, using a model that includes asset market risk country, the behavior of nominal exchange rate, as well as determine the impact of this risk in determining the exchange rate, also seeks to establish whether the exchange rate is below the level predicted by their bases to determine whether they have to take steps to bring its level of long-term. The econometric methodology used is that of the ordinary least squares, the results are consistent with the logic and economic theory, it shows that among the country risk and exchange rate there is a direct relationship, namely that reductions of country risk generate currency appreciations, also shows evidence that the nominal exchange rate is below its equilibrium level.
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number
9540.
Find related papers by JEL classification: F42 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - International Policy Coordination and Transmission F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models F31 - International Economics - - International Finance - - - Foreign Exchange
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