Managing Foreign Exchange Risk
Essays Commissioned in Honor of the Centenary of the Wharton School, University of Pennsylvania

A collection of essays about foreign exchange risk and how to cope with it.

Richard J. Herring (Edited by)

9780521311205, Cambridge University Press

Paperback, published 30 April 1986

252 pages, 26 b/w illus. 35 tables
22.8 x 15.2 x 1.5 cm, 0.35 kg

Since the early 1970s exchange volatility has increased markedly. This increased volatility is a major concern not only for government policy makers but also corporations engaged in international activities, because their profitability may be sharply altered by unanticipated exchange rate movements. This situation has posed a challenge to academic researchers, but over the past decade considerable progress has been made in our ability to understand the causes of exchange rate fluctuations and their impact on economic foreign exchange risk and to assess investment opportunities generated by exchange rate fluctuations. This book is a collection of essays by academic experts from the fields of economics, finance, and accounting, and by several distinguished practitioners from international corporations and financial institutions. Together the essays present a broad, up-to-date survey of what we know about foreign exchange risk and how to cope with it.

List of contributors
Acknowledgments
Introduction and overview Richard J. Herring
1. Macroeconomic determinants of real exchange risk William H. Branson
Perspective: on exchange rate analysis and foreign exchange risk Marina v. N. Klein
2. Modeling exchange rate fluctuations and international disturbances Lawrence R. Klein
Perspective: problems in modeling international risks Peter B. Kenen
3. International portfolio diversification Haim Levy and Marshall Sarnat
perspective: international portfolio diversification: a practitioner's point of view Henk A. Klein Haneveld
4. The evaluation and use of foreign exchange rate forecasting services John F. O. Bilson
5. Foreign currency accounting and its transition Yuji Ijiri
Perspective: some informal remarks on debt management and liquidity Eugene H. Rotberg
Perspective: managing foreign exchange exposure Harry Taylor
Index.

Subject Areas: Macroeconomics [KCB]