The impact of inflation risk on forward trading and production
This note examines the behavior of a competitive firm that faces joint price and inflation risk. Given that the price risk is negatively correlated with the inflation risk in the sense of expectation dependence, the firm optimally opts for an over-hedge if the firm's coefficient of relative ris...
| Main Authors: | , |
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| Other Authors: | |
| Format: | Others |
| Language: | English |
| Published: |
Saechsische Landesbibliothek- Staats- und Universitaetsbibliothek Dresden
2014
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| Online Access: | http://nbn-resolving.de/urn:nbn:de:bsz:14-qucosa-150486 http://nbn-resolving.de/urn:nbn:de:bsz:14-qucosa-150486 http://www.qucosa.de/fileadmin/data/qucosa/documents/15048/Broll_2014_2_inflation_hedge_U_K.pdf |