05012oam 22011774 450 991078852540332120230829002221.01-4623-8511-71-4527-4308-81-282-44835-81-4519-8410-39786613821546(CKB)3360000000443192(EBL)3014518(SSID)ssj0000939958(PQKBManifestationID)11592409(PQKBTitleCode)TC0000939958(PQKBWorkID)10938236(PQKB)11045646(OCoLC)694141217(MiAaPQ)EBC3014518(IMF)WPIEE2006160(EXLCZ)99336000000044319220020129d2006 uf 0engur|n|---|||||txtccrU.S. Dollar Risk Premiums and Capital Flows /Ravi Balakrishnan, Volodymyr TulinWashington, D.C. :International Monetary Fund,2006.1 online resource (29 p.)IMF Working Papers"June 2006."1-4518-6420-5 Includes bibliographical references.""Contents""; ""I. INTRODUCTION AND SUMMARY""; ""II. WHAT ARE RISK PREMIUMS ON THE DOLLAR AND HOW CAN WE MEASURE THEM? ""; ""III. CAPITAL FLOWS AND RISK PREMIUMS""; ""IV. EXPLAINING RISK PREMIUM MOVEMENTS""; ""V. CONCLUSIONS AND POLICY IMPLICATIONS""; ""DATA AND REGRESSION METHODOLOGY""; ""References""This paper sheds light on the attractiveness of U.S. assets by studying dollar risk premiums, calculated using Consensus exchange rate forecasts, and linking them to bilateral capital flows. The paper finds that the presence of negative dollar risk premiums (i.e. expectations of a dollar depreciation net of interest rate effects) amid record capital inflows could suggest that investors may favor U.S. assets for structural reasons. One possible explanation could be that the Asian crisis created a large pool of savings searching for relatively riskless investment opportunities, which were provided by deep, liquid, and innovative U.S. financial markets with robust investor protection. Moreover, the continued attractiveness of U.S. financial markets to European investors suggests that they offer a large array of assets, with different risk/return characteristics, that facilitate the structuring of diversified investment portfolios. Looking forward, this suggests that the allocative efficiency of U.S. financial markets could mitigate risks of a disorderly unwinding of global current account imbalances.IMF Working Papers; Working Paper ;No. 2006/160Dollar, AmericanCapital movementsExports and ImportsimfForeign ExchangeimfInvestments: GeneralimfInvestments: BondsimfInvestmentimfCapitalimfIntangible CapitalimfCapacityimfGeneral Financial Markets: General (includes Measurement and Data)imfInternational InvestmentimfLong-term Capital MovementsimfMacroeconomicsimfInvestment & securitiesimfInternational economicsimfCurrencyimfForeign exchangeimfReturn on investmentimfTreasury bills and bondsimfCapital flowsimfCorporate bondsimfExchange ratesimfSaving and investmentimfGovernment securitiesimfCapital movementsimfBondsimfUnited StatesimfDollar, American.Capital movements.Exports and ImportsForeign ExchangeInvestments: GeneralInvestments: BondsInvestmentCapitalIntangible CapitalCapacityGeneral Financial Markets: General (includes Measurement and Data)International InvestmentLong-term Capital MovementsMacroeconomicsInvestment & securitiesInternational economicsCurrencyForeign exchangeReturn on investmentTreasury bills and bondsCapital flowsCorporate bondsExchange ratesSaving and investmentGovernment securitiesCapital movementsBondsBalakrishnan Ravi1462131Tulin Volodymyr1462132DcWaIMFBOOK9910788525403321U.S. Dollar Risk Premiums and Capital Flows3670974UNINA