Finance
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- November 2023
- Article
A Quantity-Driven Theory of Term Premia and Exchange Rates
We develop a model in which specialized bond investors must absorb shocks to the supply and demand for long-term bonds in two currencies. Since long-term bonds and foreign exchange are both exposed to unexpected movements in short-term interest rates, a shift in the supply of long-term bonds in one currency influences the foreign exchange rate between the two currencies, as well as bond term premia in both currencies. Our model matches several important empirical patterns, including the co-movement between exchange rates and term premia, as well as the finding that central banks' quantitative easing policies impact exchange rates. An extension of our model links spot exchange rates to the persistent deviations from covered interest rate parity that have emerged since 2008.
- November 2023
- Article
A Quantity-Driven Theory of Term Premia and Exchange Rates
We develop a model in which specialized bond investors must absorb shocks to the supply and demand for long-term bonds in two currencies. Since long-term bonds and foreign exchange are both exposed to unexpected movements in short-term interest rates, a shift in the supply of long-term bonds in one currency influences the foreign exchange rate...
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- September 2023
- Case
Breaking Barriers: How Brex is Shaping the Future of Financial Services for Startups
By: Marco Di Maggio, James Barnett and Susie L. Ma- September 2023
- Case
Breaking Barriers: How Brex is Shaping the Future of Financial Services for Startups
By: Marco Di Maggio, James Barnett and Susie L. Ma -
- September 2023
- Case
Cost of Capital at DraftKings
By: Malcolm Baker, Sebastian Hillenbrand and James Barnett- September 2023
- Case
Cost of Capital at DraftKings
By: Malcolm Baker, Sebastian Hillenbrand and James Barnett
About the Unit
Our strategy is to assemble and nurture a faculty whose interests and skills complement each other, and who work well together:
a) to produce a broad range of finance-related research that is published in top-tier scientific and practitioner journals, and that addresses issues of present and future importance to managers (including regulators and policy makers);
b) to develop highly-relevant and intellectually rigorous MBA and executive education courses; and
c) to mentor future academics through the Business Economics doctoral program.
Our applied focus and access to business organizations are major advantages which are reinforced by our students and our case-based approach. We have a faculty with broad expertise, and we have resources, field contacts, and institutional support, all of which we can leverage to do richer work and be more productive than we could at other institutions.
Recent Publications
A Quantity-Driven Theory of Term Premia and Exchange Rates
- November 2023 |
- Article |
- Quarterly Journal of Economics
Stock Market Stimulus
- October 2023 |
- Article |
- Review of Financial Studies
Root Capital and the Efficient Impact Frontier Simulation Dataset for Students
- September 2023 |
- Supplement |
- Faculty Research
Root Capital and the Efficient Impact Frontier Simulation: Guidelines and Suggestions
- September 2023 |
- Exercise |
- Faculty Research
Equity Restructuring at Dell Technologies: Buy Out, Buy Up, Buy In (A)
- September 2023 |
- Supplement |
- Faculty Research
Breaking Barriers: How Brex is Shaping the Future of Financial Services for Startups
- September 2023 |
- Case |
- Faculty Research
Cost of Capital at DraftKings
- September 2023 |
- Case |
- Faculty Research
Harvard Business Publishing
Seminars & Conferences
- 04 Oct 2023