The real effects of exchange rate fluctuations

3 September 2015

The exchange rate for the Norwegian kroner has been skidding up and down this year, but what is the actual impact of these fluctuations? The Centre for Asset Pricing Research (CAPR) at BI hosted an evening of expert talks on Tuesday.

Marcel Fratzscher, President of DIW Berlin – one of the leading economic research institutes and think tanks in Europe – presented a talk at BI on Tuesday titled Oil prices, exchange rates, and asset prices. Fratzscher, who is also a professor at Macroeconomics and Finance at Humboldt-University Berlin, was joined by BI professor Dagfinn Rime and DNB Markets FX Strategist Magne Østnor, who each led a talk titled Safe and not-so-safe currencies and Liquidity illusion; FX no exception respectively. 

- Since the financial crisis in 2008, we have experienced several episodes with very high volatility and wide bid-ask spreads in NOK/EUR. Volatility may be related to the release of public information, however, a better understanding of NOK/EUR-liquidity is also necessary. Furthermore, dramatic changes in the world economy, falling oil prices, financial and public debt crisis have highlighted the importance of financial markets and institutions in understanding the economic development, says Geir Høidal Bjønnes, Associate Professor in the Department of Finance at BI.

About CAPR

The Centre for Asset Pricing Research serves as a bridge between academia and the financial industry. Established in 2011, the centre at BI supports faculty research groups, workshops, internal seminars and industry seminars. The long term aim of the centre is to build up an internationally visible research group.

Read more about CAPR and its upcoming events here

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