Case | HBS Case Collection | January 1989 (Revised July 1991)

Bank for International Development, Software Case

by W. Carl Kester and Timothy A. Luehrman

Abstract

A hypothetical case in which an assistant treasurer of a supranational bank is asked to determine in which currencies it has been cheaper ex post to borrow. An integral part of the case is a Lotus 1-2-3 worksheet containing monthly data on yen and dollar interest rates, exchange rates, and inflation rates from January 1976 to October 1985. The worksheet with accompanying questions prompts students to study the various parity relationships between the yen and the dollar numerically, graphically, or statistically. Students are challenged to draw inferences concerning the circumstances under which a treasurer should expect to prefer borrowing in one currency rather than others. Requires Case Software diskette (9-289-534).

Keywords: Decisions; Interest Rates; International Finance; Relationships; Currency; Management Analysis, Tools, and Techniques; Data and Data Sets; Inflation and Deflation;

Citation:

Kester, W. Carl, and Timothy A. Luehrman. "Bank for International Development, Software Case." Harvard Business School Case 289-034, January 1989. (Revised July 1991.)