Now showing items 1-7 of 7

    • Carry trade: The gains of diversification 

      Burnside, C; Eichenbaum, M; Rebelo, S (Journal of the European Economic Association, 2008-04-01)
      Market participants routinely take advantage of the failure of uncovered interest rate parity to speculate in currency markets. Perhaps the most widely used currency speculation strategy is the carry trade. In this article ...
    • Do peso problems explain the returns to the carry trade? 

      Burnside, C; Eichenbaum, M; Kleshchelski, I; Rebelo, S (Review of Financial Studies, 2011-03-01)
      We study the properties of the carry trade, a currency speculation strategy in which an investor borrows low-interest-rate currencies and lends high-interest-rate currencies. This strategy generates payoffs that are on average ...
    • Government finance in the wake of currency crises 

      Burnside, C; Eichenbaum, M; Rebelo, S (Journal of Monetary Economics, 2006-04-01)
      We address three questions: (i) Can classical models be reconciled with the fact that many crises are marked by high rates of depreciation and small increases in seignorage revenue? (ii) What are the implications of different ...
    • Hedging and financial fragility in fixed exchange rate regimes 

      Burnside, C; Eichenbaum, M; Rebelo, S (European Economic Review, 2001-06-23)
      Currency crises that coincide with banking crises tend to share at least three elements. First, banks have a currency mismatch between their assets and liabilities. Second, banks do not completely hedge the associated exchange ...
    • Labor hoarding and the business cycle 

      Burnside, C; Eichenbaum, M; Rebelo, S (Journal of Political Economy, 1993-12-01)
      This paper investigates the sensitivity of Solow residual based measures of technology shocks to labor hoarding behavior. Using a structural model of labor hoarding and the identifying restriction that innovations to technology ...
    • Understanding booms and busts in housing markets 

      Burnside, C; Eichenbaum, M; Rebelo, S (Journal of Political Economy, 2016-08-01)
      © 2016 by The University of Chicago. All rights reserved.Some booms in housing prices are followed by busts. Others are not. It is generally difficult to find observable fundamentals that are useful for predicting whether ...
    • Understanding the Forward Premium Puzzle: A Microstructure Approach 

      Burnside, C; Eichenbaum, M; Rebelo, S (American Economic Journal: Macroeconomics, 2009-07)