Currency Risk and Country Risk in International Banking

This paper focuses on the conditions under which banks are subject to currency and country risks on their dollar-denominated loans to foreign firms and governments. We conclude that currency risk is a function of the rates of domestic and foreign inflation, deviations from purchasing power parity, and the effect of these deviations on the firm's and the nation's dollar-equivalent cash flows. Country risk is largely determined by the variability of the nation's terms of trade and the government's willingness to allow the national economy to adjust rapidly to changing economic fortunes.     

Yesterday's Bad Times Are Today's Good Old Times: Retail Price Changes Are More Frequent Today Than in the 1890s

This paper documents differences in the nominal rigidity of retail prices across two 28-month periods: 1889–91 and 1997–99. The most striking finding is that prices changed much less frequently in 1889–91. In the late-1800s when price changes did occur they were smaller on average and more narrowly distributed with fewer small or large price changes. Further, price changes were more permanent 100-plus years ago. These differences are consistent with a high occurrence of temporary price shocks and a higher cost of changing prices in 1889–91 than in 1997–99.     

BUILDING RELATED HOME ACCIDENTS: A PRELIMINARY STUDY

In the period August 1975 to July 1977 the Building Research Station undertook a pilot study to obtain data on home accidents in co-operation with the Watford General Hospital. Subject to precautions regarding medical confidentiality, information was recorded on patients who attended the Accident and Emergency Department of the hospital following an accident in or around a dwelling. In order to facilitate comparison with data on fatalities, use was made of the International Classification of Diseases ‘External Cause of Injury’ system to categorize accident events. It was found that the four main types of non-fatal accident were falls, accidents caused by cutting or piercing instruments, by striking against or being struck by objects, and by hot substances and steam. The study also showed that building features and services might rank relatively highly in terms of the frequency with which they become involved as agents in accidents when compared to other common household items.     

The Bank Capital Decision: A Time Series—Cross Section Analysis

This paper seeks to explain the dramatic decline in capital to asset ratios in U.S. commercial banks during the last two decades. It is hypothesized that the rise in nominal interest rates during this period might have contributed substantially to the fall in capital ratios. Time series-cross section estimation supports the hypothesis regarding the interest rate.