Exchange Rates, Inflation Expectations, and Oil Prices Under Geopolitical Uncertainty

A special issue of Journal of Risk and Financial Management (ISSN 1911-8074). This special issue belongs to the section "Economics and Finance".

Deadline for manuscript submissions: closed (30 June 2023) | Viewed by 1987

Special Issue Editor

College of Business, The University of Tulsa, Tulsa, OK 74037, USA
Interests: open economy macroeconomics; financial economics; monetary policy; international relations

Special Issue Information

Dear Colleagues,

This Special Issue focuses on the broad topics of “Exchange Rates, Inflation Expectations, and Oil Prices under Geopolitical Uncertainty”. Two years after the onset of global COVID-19 pandemic and 5 months after Russia’s invasion of the Ukraine, the United States and nearly all EU countries are experiencing the highest inflation rates of the past 40 years. Moreover, the heterogeneous responses of developed countries to COVID-19 outbreaks created frictions in supply chains, exacerbating inflationary pressures, and Russia’s invasion of Ukraine has upended the global oil market through the economic sanctions imposed on Russia by the West.

To take stock of the progress in the field, the Journal of Risk and Financial Management is inviting contributions for a Special Issue devoted to “Exchange Rates, Inflation Expectations, and Oil Prices under Geopolitical Uncertainty”. The purpose of this Special Issue is to promote the discussion of innovative research on empirical or theoretical issues that are relevant to understanding the dynamic relationship between exchange rates, inflation expectations, and oil prices when the geopolitical world is subject in increased uncertainty. The key topics of interest include but are not limited to the following: exchange rates and inflation; exchange rates and oil prices; inflation expectations and oil prices; exchange rates and expected inflation; uncovered interest parity; covered interest parity; geopolitical uncertainty; central banking; central bank coordination.

Dr. Eric Olson
Guest Editor

Manuscript Submission Information

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Keywords

  • international finance
  • uncovered interest parity
  • covered interest parity
  • inflation expectations
  • oil prices

Published Papers (1 paper)

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Research

18 pages, 1463 KiB  
Article
On the Exchange Rate Dynamics of the Norwegian Krone
by Morten Risstad, Airin Thodesen, Kristian August Thune and Sjur Westgaard
J. Risk Financial Manag. 2023, 16(7), 308; https://doi.org/10.3390/jrfm16070308 - 25 Jun 2023
Viewed by 1629
Abstract
Global energy production is undergoing a transition from fossils to renewables. At the same time, the Norwegian Oil Fund has grown exponentially in size and is now a major global investor. These events in combination are likely to impact the dynamics of the [...] Read more.
Global energy production is undergoing a transition from fossils to renewables. At the same time, the Norwegian Oil Fund has grown exponentially in size and is now a major global investor. These events in combination are likely to impact the dynamics of the Norwegian krone. Concurrently, the persistent weakening of the Norwegian krone (NOK), hitting record low exchange rates against the major currencies, is sparking national and international interest. Using updated data, we find that oil prices and global asset prices are both important drivers of EURNOK returns. However, we find that the relative importance changed following the 2015 oil price decline, whereafter asset prices became more significant. Furthermore, we observe an impact of investor risk aversion, suggesting that the krone is no longer a safe-haven currency. Full article
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