In this study, it is attempted to estimate the amount of speculation in foreign exchange markets. Such an estimate is hard to make because it is theoretically as well as empirically difficult to delimitate speculation in relation to other activities. In particular, the destination between...

The current discussion about the future of the financial system draws heavily on a set of theories known as the 'New Monetary Economics'. The New Monetary Economics predicts that deregulation and financial innovation will lead to a money less world. This paper uses a market micro-structure...

Garber and Spencer have argued that dynamic hedging may lead to perverse results when interest rates are used to defend an exchange rate. This paper shows that interest rate changes have little effects on dynamic hedgers when volatility is high

Card payment systems are sometimes accused of taking from the poor and giving to the rich. The argument is as follows: High card fees are leading to higher retail prices for both, card users and cash users. However, high income card holders are receiving rewards when purchasing by card. The...

In this study it is attempted to estimate the amount of speculation in foreign exchange market.

As well as theoretical evidence advocating the intertemporal view, the authors present four case studies in support of this approach: Germany before and after unification, Spain before joining the EMS, the United States since the early 1980s, and Japan’s persistent current account surpluses.