BoE paper models exchange rates with private money creation

foreign exchange

New research published by the Bank of England proposes a model of exchange rates that reflects the importance of both financial positions and private money creation in the economy.

Authors Ambrogio Cesa-Bianchi, Michael Kumhof, Andrej Sokol and Gregory Thwaites say it is “widely recognised” that exchange rates are “poorly explained” by theories based on uncovered interest parity (UIP). They note the essential role played by the supply of assets and liabilities in domestic and foreign currencies

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: