Summary
This award funds a research project examining the factors influencing exchange rates, with a focus on international asset prices and capital flows. Understanding the drivers of exchange rates is a central objective of international macroeconomics and finance. Exchange rates are key prices affecting the relative cost of imports and exports, as well as the returns to investing in assets abroad. Yet exchange rates have long puzzled economists: they are inconsistent with benchmark models in economics and are very difficult to predict. This project makes progress on these puzzles by exploring the r
