This setting lets you change the way you view articles. You can choose to have articles open in a dialog window, a new tab, or directly in the same window.
Open in Dialog
Open in New Tab
Open in same window

American Economic Review: Vol. 100 No. 1 (March 2010)


Quick Tools:

Print Article Summary
Export Citation
Sign up for Email Alerts Follow us on Twitter


AER - All Issues

AER Forthcoming Articles

Financial Exchange Rates and International Currency Exposures

Article Citation

Lane, Philip R., and Jay C. Shambaugh. 2010. "Financial Exchange Rates and International Currency Exposures." American Economic Review, 100(1): 518-40.

DOI: 10.1257/aer.100.1.518


In order to gain a better empirical understanding of the international financial implications of currency movements, we construct a database of international currency exposures for a large panel of countries over 1990-2004. We show that trade-weighted exchange rate indices are insufficient to understand the financial impact of currency movements and that our currency measures have high explanatory power for the valuation term in net foreign asset dynamics. Exchange rate valuation shocks are sizable, not quickly reversed, and may entail substantial wealth redistributions. Further, we show that many developing countries have substantially reduced their negative foreign currency positions over the last decade. (F31, F32, G15)

Article Full-Text Access

Full-text Article

Additional Materials

Download Data Set (1.60 MB)


Lane, Philip R. (Trinity College Dublin)
Shambaugh, Jay C. (Dartmouth College)

JEL Classifications

F31: Foreign Exchange
F32: Current Account Adjustment; Short-term Capital Movements
G15: International Financial Markets

American Economic Review

Quick Tools:

Sign up for Email Alerts

Follow us on Twitter

Subscription Information
(Institutional Administrator Access)


AER - All Issues

AER - Forthcoming Articles

Virtual Field Journals

AEA Member Login:

AEAweb | AEA Journals | Contact Us