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Law of One Price

The idea that the price of a commodity denominated in a specific currency should be the same regardless of the...

Leads and Lags

A strategy of shifting funds from weak currency to strong currencies. It calls for adjustments in the collection and payment...

Leading and Lagging

A strategy of shifting funds from weak currency to strong currencies. It calls for adjustments in the collection and payment...

Domestic CAPM

A capital asset pricing model (CAPM) that is premised on that investors hold only the assets of a specific country (usually where...

Local CAPM

A capital asset pricing model (CAPM) that is premised on that investors hold only the assets of a specific country (usually where...

Tesobono

A peso-denominated bond that is issued by the Mexican government and whose coupons and principal are indexed to the U.S dollar at...

Absolute PPP

A version of purchasing power parity (PPP) that predicts the exchange rate to adjust so that the internal purchasing power...