Publications

February 2008 (Revised April 2009)
Case

Chronology of the Asian Financial Crisis

By: Laura Alfaro, Rafael Di Tella and Renee Kim

In July 1997, Thailand became the first Asian "tiger" economy to abandon its fixed exchange rate system in response to speculative attacks on its currency. Investors started to flee Asia, and the crisis rapidly spread to other countries. Central banks spent billions of... View Details

Keywords: Financial Crisis; Currency Exchange Rate; Central Banking; Policy; Crisis Management; Asia; Thailand

Person Page

Media

This lists media reports covering my firm dollarDEX Investments or me (or my colleagues), or columns written by me (or my colleagues). There are all... View Details

January 1995 (Revised May 1997)
Case

Syscom Computers

By: Kenneth A. Froot, Peter Tufano and Chris L Marshall

Discusses a company deciding what it should do to manage its worldwide hedging operations. View Details

Keywords: Decisions; Currency Exchange Rate; Information Management; Management Practices and Processes; Risk Management; Operations

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01 Mar 2011
News

The Check Is in the Mail

kept by American merchants at a time when hard currency was often scarce. Period documents reveal a fascinating level of intimate detail in how a creditor’s reliability was assessed. “You start to get a real, not abstract, image of... View Details

Keywords: Arts, Sports, Language, Driving, and Other Schools; Educational Services; News, Library, Internet, and Other Services; Information

October 2008
Teaching Note

Samoa Tala (TN)

By: Joshua D. Coval, Bhagwan Chowdhry and Konark Saxena

Teaching Note for [209053]. View Details

Keywords: Currency Exchange Rate; Risk Management; Credit Derivatives and Swaps; Microfinance; Strategy; Borrowing and Debt; Currency; Cash Flow; Samoa

Article

On the Political Economy of Temporary Stabilization Programs

By: Laura Alfaro

This paper provides a political economy explanation for temporary exchange-rate-based stabilization programs by focusing on the distributional effects of real exchange-rate appreciation. I propose an economy in which agents are endowed with either tradable or... View Details

Keywords: Government and Politics; Economy; Balance and Stability; Programs; Currency Exchange Rate; Cash; Value; Distribution

December 1994 (Revised June 1995)
Case

Tiffany & Co.--1993

By: W. Carl Kester and Kendall Backstrand

The restructuring of Tiffany's retailing agreement with Mitsukoshi Ltd. in 1993 exposed Tiffany to substantial yen/dollar exchange rate volatility that it had not previously faced. This new exposure requires Tiffany to establish risk management policies and practices.... View Details

Keywords: Restructuring; Currency Exchange Rate; Management Practices and Processes; Risk Management; Agreements and Arrangements; Situation or Environment

September 2010 (Revised March 2012)
Teaching Note

China "Unbalanced" (TN)

By: Diego A. Comin and Richard H.K. Vietor

Teaching Note for 711010. View Details

Keywords: Financial Crisis; Growth and Development Strategy; Demand and Consumers; Policy; Trade; Currency Exchange Rate; Energy; Investment; China; United States

December 1980 (Revised January 1994)
Case

International Foodstuffs

By: David E. Bell

Describes three fairly routine instances in which considerations of risk exposure in foreign exchange are necessary. The three are a delayed payment for a grain shipment, a foreign subsidiary facing devaluation of its domestic currency, and a foreign acquisition. The... View Details

Keywords: Currency Exchange Rate; Risk and Uncertainty; International Relations; Mergers and Acquisitions; Money; International Finance; Financial Services Industry

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01 Sep 2007
News

Paulson Speaks on China at HBS

intellectual property protection, and domestic consumption. In addition, Paulson said, the Chinese will not “be able to develop the financial markets and banks they want unless they have a currency that reflects economic reality.”... View Details

Keywords: Colleges, Universities, and Professional Schools; Educational Services; Administration of Economic Programs; Government

01 Mar 2009
News

Buddy, Can You Spare a Trillion

periodically blown up other emerging markets. Having already devalued the renminbi in 1994, and having retained capital controls throughout the period of economic reform, China suffered no currency crisis in 1997–1998. When the Chinese... View Details

Keywords: Finance; Publishing Industries (except Internet); Information

March 2006 (Revised November 2006)
Case

China: To Float or Not To Float? (D)- Bank of America's Strategic Investment in China Construction Bank

By: Laura Alfaro, Rafael M. Di Tella and Ingrid Vogel

With its $3 billion investment in Chinese state bank China Construction Bank, Bank of America--the second U.S. bank behind Citigroup in terms of assets and market capitalization--was one of several foreign banks directly participating in China's banking sector reform.... View Details

Keywords: Currency Exchange Rate; Banks and Banking; Foreign Direct Investment; International Relations; Banking Industry; China; United States

01 Oct 2000
News

HBS Club Flourishes in London

representing business, sports, academia, civil and military services, politics, and religious organizations, inspire thoughtful conversations. Recent forums on private equity and the Internet, along with debates on single currency and... View Details

Keywords: Amy E. Dean

01 Jun 2006
News

Faculty Books

Pill, and Ingrid Vogel (World Scientific Publishing Co.) Understanding the genesis of financial and currency crises, stock-market booms and busts, and social and labor unrest is crucial in making informed managerial decisions. These... View Details

Keywords: Business Schools & Computer & Management Training; Educational Services

25 Oct 2011
First Look

First Look: October 25

Institutional Investors Frame Their Losses: Evidence on Dynamic Loss Aversion from Currency Portfolios Authors:Kenneth A. Froot, J. Arabadjis, S. Cates, and S. Lawrence Publication:Journal of Portfolio Management (forthcoming) Abstract... View Details

Keywords: Sean Silverthorne

July 1991 (Revised December 1993)
Case

Grupo Industrial Alfa, S.A.--1982

The rapid depreciation of the peso in 1982 precipitated a crisis at Grupo Alfa, Mexico's largest private company. The company's peso cash flow was insufficient to service its large dollar-denominated debt. Students are asked to formulate a plan for restructuring Alfa's... View Details

Keywords: Currency Exchange Rate; Restructuring; Negotiation Participants; Business Strategy; Financial Crisis; Mexico