Policy Tensor

Share this post

User's avatar
Policy Tensor
The Portfolio Rebalancing Model of FX
Copy link
Facebook
Email
Notes
More

The Portfolio Rebalancing Model of FX

Wither the Mighty Dollar?

Policy Tensor's avatar
Policy Tensor
May 17, 2025
∙ Paid
13

Share this post

User's avatar
Policy Tensor
The Portfolio Rebalancing Model of FX
Copy link
Facebook
Email
Notes
More
5
Share

Came across this fascinating paper by Nelson Camanho, Harald Hau and Hélène Rey (2022) called “Global Portfolio Rebalancing and Exchange Rates.” They propose a very interesting channel from relative equity returns to exchange rates. The idea is that global portfolio managers maintain slow-moving target allocations to different countries’ equity markets.…

Keep reading with a 7-day free trial

Subscribe to Policy Tensor to keep reading this post and get 7 days of free access to the full post archives.

Already a paid subscriber? Sign in
© 2025 Anusar Farooqui
Privacy ∙ Terms ∙ Collection notice
Start writingGet the app
Substack is the home for great culture

Share

Copy link
Facebook
Email
Notes
More