The Special FX Market

We present a model of the foreign exchange market with 2 types of investors: cash-constrained carry traders, and short-sighed boundedly rational technical traders. We show that the interactions between both agents explain several of the well-documented puzzles of the exchange rate. In particular, the model provides a theoretical base for the fact that currencies of high interest rate countries tend to crash, sometimes without a clear fundamental trigger

MoreLess

Year of publication:	2017
Authors:	Raffestin, Louis
Publisher:	[2017]: [S.l.] : SSRN
Subject:	Theorie \| Theory \| Marketingmanagement \| Marketing management \| Marketing \| Welt \| World

freely available

Full text |

More access options

doi.org

Check Google Scholar

In German libraries (KVK)

I need help

Extent:	1 Online-Ressource (41 p)
Type of publication:	Book / Working Paper
Language:	English
Notes:	Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments June 3, 2017 erstellt
Other identifiers:	10.2139/ssrn.2979978 [DOI]
Classification:	E44 - Financial Markets and the Macroeconomy ; F31 - Foreign Exchange ; G01 - Financial Crises ; G17 - Financial Forecasting
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://www.econbiz.de/10012955023