Expectations, Risk and Uncertainty in the Foreign Exchange Market
Title | Expectations, Risk and Uncertainty in the Foreign Exchange Market PDF eBook |
Author | Mark P. Taylor |
Publisher | |
Pages | 19 |
Release | 1987 |
Genre | Foreign exchange |
ISBN | 9780903312875 |
Expectations and the Foreign Exchange Market
Title | Expectations and the Foreign Exchange Market PDF eBook |
Author | Craig Hakkio |
Publisher | Routledge |
Pages | 100 |
Release | 2017-04-21 |
Genre | Business & Economics |
ISBN | 1351801686 |
Originally published in 1984. This book examines two important dimensions of efficiency in the foreign exchange market using econometric techniques. It responds to the macroeconomics trend to re-examining the theories of exchange rate determination following the erratic behaviour of exchange rates in the late 1970s. In particular the text looks at the relation between spot and forward exchange rates and the term structure of the forward premium, both of which require a joint test of market efficiency and the equilibrium model. Approaches used are the regression of spot rates on lagged forward rates and an explicit time series analysis of the spot and forward rates, using data from Canada, the United Kingdom, the Netherlands, Switzerland and Germany.
The Effects of Uncertainty and Incomplete Information in a Foreign Exchange Market Subject to Noisy Rational Expectations
Title | The Effects of Uncertainty and Incomplete Information in a Foreign Exchange Market Subject to Noisy Rational Expectations PDF eBook |
Author | Edgar J. Wilson |
Publisher | |
Pages | 32 |
Release | 1987 |
Genre | Demand for money |
ISBN | 9780855906009 |
Uncertainty and Expectation
Title | Uncertainty and Expectation PDF eBook |
Author | Gerald Ashley |
Publisher | John Wiley & Sons |
Pages | 188 |
Release | 2005-08-05 |
Genre | Business & Economics |
ISBN | 0470864702 |
In this entertaining and thoughtful book, Gerald Ashley sets out to explain what trading is, and lays out a modus operandi for being a trader and investor. He draws upon market anecdotes and examples from the past, seeking to debunk many myths surrounding financial markets, and to try and make the reader understand the real processes, risks and rewards that drive investment. In particular he examines ideas in market and individual investor behaviour, and questions the usefulness of many of todays standard investment techniques including benchmarks, charts, analysts and 'gurus'. He also lays out simple precepts for understanding investment risk and suggests ideas for managing your investments in today's markets.
The Psychology of the Foreign Exchange Market
Title | The Psychology of the Foreign Exchange Market PDF eBook |
Author | Thomas Oberlechner |
Publisher | John Wiley & Sons |
Pages | 278 |
Release | 2005-07-08 |
Genre | Business & Economics |
ISBN | 0470012013 |
This book demystifies the foreign exchange market by focusing on the people who comprise it. Drawing on the expertise of the very professionals whose decisions help shape the market, Thomas Oberlechner describes the highly interdependent relationship between financial decision makers and news providers, showing that the assumption that the foreign exchange market is purely economic and rational has to be replaced by a more complex market psychology.
Managing Foreign Exchange Risk
Title | Managing Foreign Exchange Risk PDF eBook |
Author | Richard J. Herring |
Publisher | Cambridge University Press |
Pages | 254 |
Release | 1986-04-30 |
Genre | Business & Economics |
ISBN | 9780521311205 |
A collection of essays about foreign exchange risk and how to cope with it.
Foreign Exchange Intervention Rules for Central Banks: A Risk-based Framework
Title | Foreign Exchange Intervention Rules for Central Banks: A Risk-based Framework PDF eBook |
Author | Romain Lafarguette |
Publisher | International Monetary Fund |
Pages | 33 |
Release | 2021-02-12 |
Genre | Business & Economics |
ISBN | 1513569406 |
This paper presents a rule for foreign exchange interventions (FXI), designed to preserve financial stability in floating exchange rate arrangements. The FXI rule addresses a market failure: the absence of hedging solution for tail exchange rate risk in the market (i.e. high volatility). Market impairment or overshoot of exchange rate between two equilibria could generate high volatility and threaten financial stability due to unhedged exposure to exchange rate risk in the economy. The rule uses the concept of Value at Risk (VaR) to define FXI triggers. While it provides to the market a hedge against tail risk, the rule allows the exchange rate to smoothly adjust to new equilibria. In addition, the rule is budget neutral over the medium term, encourages a prudent risk management in the market, and is more resilient to speculative attacks than other rules, such as fixed-volatility rules. The empirical methodology is backtested on Banco Mexico’s FXIs data between 2008 and 2016.