LEADER 05012oam 22011774 450 001 9910788525403321 005 20230829002221.0 010 $a1-4623-8511-7 010 $a1-4527-4308-8 010 $a1-282-44835-8 010 $a1-4519-8410-3 010 $a9786613821546 035 $a(CKB)3360000000443192 035 $a(EBL)3014518 035 $a(SSID)ssj0000939958 035 $a(PQKBManifestationID)11592409 035 $a(PQKBTitleCode)TC0000939958 035 $a(PQKBWorkID)10938236 035 $a(PQKB)11045646 035 $a(OCoLC)694141217 035 $a(MiAaPQ)EBC3014518 035 $a(IMF)WPIEE2006160 035 $a(EXLCZ)993360000000443192 100 $a20020129d2006 uf 0 101 0 $aeng 135 $aur|n|---||||| 181 $ctxt 182 $cc 183 $acr 200 10$aU.S. Dollar Risk Premiums and Capital Flows /$fRavi Balakrishnan, Volodymyr Tulin 210 1$aWashington, D.C. :$cInternational Monetary Fund,$d2006. 215 $a1 online resource (29 p.) 225 1 $aIMF Working Papers 300 $a"June 2006." 311 $a1-4518-6420-5 320 $aIncludes bibliographical references. 327 $a""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"" 330 3 $aThis paper sheds light on the attractiveness of U.S. assets by studying dollar risk premiums, calculated using Consensus exchange rate forecasts, and linking them to bilateral capital flows. The paper finds that the presence of negative dollar risk premiums (i.e. expectations of a dollar depreciation net of interest rate effects) amid record capital inflows could suggest that investors may favor U.S. assets for structural reasons. One possible explanation could be that the Asian crisis created a large pool of savings searching for relatively riskless investment opportunities, which were provided by deep, liquid, and innovative U.S. financial markets with robust investor protection. Moreover, the continued attractiveness of U.S. financial markets to European investors suggests that they offer a large array of assets, with different risk/return characteristics, that facilitate the structuring of diversified investment portfolios. Looking forward, this suggests that the allocative efficiency of U.S. financial markets could mitigate risks of a disorderly unwinding of global current account imbalances. 410 0$aIMF Working Papers; Working Paper ;$vNo. 2006/160 606 $aDollar, American 606 $aCapital movements 606 $aExports and Imports$2imf 606 $aForeign Exchange$2imf 606 $aInvestments: General$2imf 606 $aInvestments: Bonds$2imf 606 $aInvestment$2imf 606 $aCapital$2imf 606 $aIntangible Capital$2imf 606 $aCapacity$2imf 606 $aGeneral Financial Markets: General (includes Measurement and Data)$2imf 606 $aInternational Investment$2imf 606 $aLong-term Capital Movements$2imf 606 $aMacroeconomics$2imf 606 $aInvestment & securities$2imf 606 $aInternational economics$2imf 606 $aCurrency$2imf 606 $aForeign exchange$2imf 606 $aReturn on investment$2imf 606 $aTreasury bills and bonds$2imf 606 $aCapital flows$2imf 606 $aCorporate bonds$2imf 606 $aExchange rates$2imf 606 $aSaving and investment$2imf 606 $aGovernment securities$2imf 606 $aCapital movements$2imf 606 $aBonds$2imf 607 $aUnited States$2imf 615 0$aDollar, American. 615 0$aCapital movements. 615 7$aExports and Imports 615 7$aForeign Exchange 615 7$aInvestments: General 615 7$aInvestments: Bonds 615 7$aInvestment 615 7$aCapital 615 7$aIntangible Capital 615 7$aCapacity 615 7$aGeneral Financial Markets: General (includes Measurement and Data) 615 7$aInternational Investment 615 7$aLong-term Capital Movements 615 7$aMacroeconomics 615 7$aInvestment & securities 615 7$aInternational economics 615 7$aCurrency 615 7$aForeign exchange 615 7$aReturn on investment 615 7$aTreasury bills and bonds 615 7$aCapital flows 615 7$aCorporate bonds 615 7$aExchange rates 615 7$aSaving and investment 615 7$aGovernment securities 615 7$aCapital movements 615 7$aBonds 700 $aBalakrishnan$b Ravi$01462131 701 $aTulin$b Volodymyr$01462132 801 0$bDcWaIMF 906 $aBOOK 912 $a9910788525403321 996 $aU.S. Dollar Risk Premiums and Capital Flows$93670974 997 $aUNINA