Search Results - subject:"Currency dealers"

How to devalue exchange rates, without building up reserves: Strategic theory for central banking

Basu, Kaushik - In: Economics Letters 117 (2012) 3, pp. 758-761

Central banks, wanting to devalue their currency, often intervene in the foreign exchange market by buying up foreign currency. Such interventions even if effective lead to a build up of foreign exchange reserves. This paper argues that the coupling of devaluation and reserve build up can be...

Persistent link: https://www.econbiz.de/10010594202

Overconfidence in Currency Markets

Oberlechner, Thomas; Osler, Carol - Department of Economics, International Business School, … - 2009

driven out of financial markets by trading losses. The paper’s main finding is that overconfident currency dealers are not … colleagues. We first provide evidence that currency dealers are indeed overconfident, which is notable since they get daily …

Persistent link: https://www.econbiz.de/10008804163