Kresge Library

SBA Research Seminar/Workshop Series presents Austin Murphy on Unraveling the Complex Interrelationships between Exchange Rates and Fundamentals


Research Seminar and Workshop Series
The School of Business Administration's Research Seminar and Workshop Series presents Austin Murphy, OU professor of Finance, speaking on Unraveling the Complex Interrelationships between Exchange Rates and Fundamentals . The presentation will be on Friday, March 9, 2007, from 11 to 1 in 449 Elliott Hall, Oakland University (campus map). Lunch will be served from 12 to 1 p.m.

By fundamentally decomposing investor expectations on fifteen exchange rates, this research investigates the intrinsic characteristics of currency values. Empirical support is provided for the hypothesis that forward rates often appear biased in finite samples because they incorporate a small probability of a large spot decline when a current account deficit exists. Investors are found to expect countries to be more likely to choose devaluation solutions to BOP problems when inflation is lower and when an alternative drop in real income growth is more "painful". Evidence is uncovered on the effect of currency unions and the U.S. Presidential election.

For more information contact Sally Galloway, 4288.

RSVP by Wednesday, March 7th (

Some articles available online *by Professor Murphy:

"An Empirical Investigation of Investor Expectations in the Currency Market.”
International Review of Financial Analysis (2006).

"An Empirical Analysis of the Structure of Credit Risk Premiums in the Eurobond
Market.” Journal of International Money and Finance (2003), 865-885.

"Stocks May Earn Less than Bonds in the 21st Century.” Journal of Investing 11
(Summer 2002), 23-24.

Books available in the OU Library by Professor Murphy:

Research solutions to the financial problems of depository institutions. Westport, Conn. : Quorum Books, 1992. HG 2152 .M87 1992 (3d floor)

The last year of a country that never existed : the true story of the fall of the Berlin Wall. Salt Lake City : Northwest Publishing, 1995. DD 282 .M987 1995 (3d floor)

Scientific investment analysis. Westport, Conn. : Quorum, 2000. HG 4529 .M857 2000 (3d floor)

The triumph of evil : the reality of the USA's cold war victory. Fucecchio (Firenze) : European Press Academic Publishing, 2000. D 843 .M87 (3d floor)

Practical financial economics : a new science. Westport, Conn. : Praeger, c2003. HG 4026 .P713 2003 (3d floor)






Created on 01/02/2007 by Millie Merz / Last updated on 8/25/13 by Millie Merz
Oakland University

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