13-Ch14-2外汇资产需求与利率平价学生.ppt

Ch14.2 The demand for Foreign Currency Assets and Interest Parity (此部分在英文书的P334—P347) Demand for Foreign Currency Assets The demand for a foreign currency bank deposit is influenced by the same considerations that influence the demand for any other asset. What will the deposit be worth in the future? ① the interest rate ② expected change in the currency’s exchange rate against other currency Asset return the percentage increase in value it offers over some time period. Your decision must be based on an expected rate of return. the expected real rate of return. Risk and Liquidity Risk: the variability it contributes to savers’ wealth; Savers dislike uncertainty… Liquidity: the ease with which the asset can be sold or exchanged for goods; …the cost and speed at which savers can dispose of them. Interest Rates Market participants need two pieces of information in order to compare returns on different deposits: How the money values of the deposits will change How exchange rates will change A currency’s interest rate is the amount of that currency an individual can earn by lending a unit of the currency for a year. Example: At a dollar interest rate of 10% per year, the lender of $1 receives $1.10 at the end of the year. The depositor is acquiring an asset denominated in the currency it deposits. Exchange Rates and Asset Returns The returns on deposits traded in the foreign exchange market depend on interest rates and expected exchange rate changes. In order to decide whether to buy a euro or a dollar deposit, one must calculate the dollar return on a euro deposit. A Simple Rule The dollar rate of return on euro deposits is approximately the euro interest rate plus the rate of depreciation of the dollar against the euro. The rate of depreciation of the dollar against the euro is the percentage increase in the dollar/euro exchange rate over a year. The expected rate of return difference between dollar and euro deposits is: R$ - [R€ + (Ee$/ € - E$/€ )/E$/€