Currency crashes and bond yields in industrial countries
By: Joseph E. Gagnon.
Contributors: Board of Governors of the Federal Reserve System (U.S.)
Series: International finance discussion papers ;; no. 837; International finance discussion papers (Online) ;; no. 837.
Publisher: Federal Reserve Board
Published: 2005
Place of publication: Washington, D.C
Language: eng
Format: Electronic resource
Description: "This paper examines episodes of sudden large exchange rate depreciations (currency crashes) in industrial countries and characterizes the behavior of government bond yields during and after these crashes.  The most important determinant of changes in bond yields appears to be inflationary expectations.  When inflation is high and rising at the time of a currency crash, bond yields tend to rise.  Otherwise--and in every currency crash since 1985--bond yields tend to fall.  Over the past 20 years, inflation rates have been remarkably stable in industrial countries after currency crashes"--Federal Reserve Board web site.
Notes: Also available in print.
Includes bibliographical references.
Title from PDF file as viewed on 9/27/2005.
System requirements: Adobe Acrobat Reader.
Mode of access: World Wide Web.