Asset market approach Exchange rates are determined by the supply and demand for a wide variety of financial assets: Shifts in the supply and demand for financial assets alter exchange rates. Changes in monetary and fiscal policy alter expected returns and perceived relative risks of financial assets,which in turn alter exchange rates
Asset market approach Exchange rates are determined by the supply and demand for a wide variety of financial assets: Shifts in the supply and demand for financial assets alter exchange rates. Changes in monetary and fiscal policy alter expected returns and perceived relative risks of financial assets, which in turn alter exchange rates
The Asset Market Approach to Forecasting 特 The asset market approach assumes that whether foreigners are willing to hold claims in monetary form depends on an extensive set of investment considerations or drivers (among others): Relative real interest rates 留 Prospects for economic growth Capital market liquidity A country's economic and social infrastructure Political safety Corporate governance practices Contagion (spread of a crisis within a region) Speculation
The Asset Market Approach to Forecasting The asset market approach assumes that whether foreigners are willing to hold claims in monetary form depends on an extensive set of investment considerations or drivers (among others): Relative real interest rates Prospects for economic growth Capital market liquidity A country’s economic and social infrastructure Political safety Corporate governance practices Contagion (spread of a crisis within a region) Speculation