Foreign exchange market

About: Foreign exchange market is a research topic. Over the lifetime, 6661 publications have been published within this topic receiving 153384 citations. The topic is also known as: forex & FX.

The Rise and Fall of Foreign Exchange Market Intervention

Abstract: The premise of the paper is that the fervor for foreign exchange market intervention by US, and European monetary authorities has ebbed in recent years A pattern of initial belief in the effectiveness of foreign exchange market intervention has recently been eroded, as is revealed by the absence of intervention in circumstances that in earlier times would have invoked it Only the Bank of Japan among central banks of the developed world has not thusfar abandoned its faith that intervention can change the relative value of the yen as determined by market forces to conform with its notion of what that value should be To explain why US and European monetary authorities no longer believe that intervention is a tool that works, I review the equivocal record of past episodes, the inconclusive results of empirical research, and the problems of implementation that intervention advocates ignore

International Financial Management

Abstract: Part One: Foundations of International Financial Management Chapter 1: Globalization and the Multinational Firm Chapter 2: International Monetary System Chapter 3: Balance of Payments Chapter 4: Corporate Governance Around the World Part Two: The Foreign Exchange Market, Exchange Rate Determination, and Currency Derivatives Chapter 5: The Market for Foreign Exchange Chapter 6: International Parity Relationships and Forecasting Foreign Exchange Rates Chapter 7: Futures and Options on Foreign Exchange Part Three: Foreign Exchange Exposure and Management Chapter 8: Management of Transaction Exposure Chapter 9: Management of Economic Exposure Chapter 10: Management of Translation Exposure Part Four: World Financial Markets and Institutions Chapter 11: International Banking and Money Market Chapter 12: International Bond Market Chapter 13: International Equity Markets Chapter 14: Interest Rate and Currency Swaps Chapter 15: International Portfolio Investment Part Five: Financial Management of the Multinational Firm Chapter 16: Foreign Direct Investment and Cross-Border Acquisitions Chapter 17: International Capital Structure and the Cost of Capital Chapter 18: International Capital Budgeting Chapter 19: Multinational Cash Management Chapter 20: International Trade Finance Chapter 21: International Tax Environment and Transfer Pricing

A Model of the ERM Crisis

Abstract: Existing models of exchange rate crises do not provide a good explanation for the breakdown of the ERM in 1992 3. This paper presents an alternative model which captures some of the important features of that period. The switch from a fixed to a floating rate is triggered by an optimizing government that wants to loosen monetary policy and boost aggregate demand. Agents in the foreign exchange market know the government's objective function and therefore build expectations of a regime switch into interest differentials. It is shown that this interaction between private sector expectations and government preferences can imply a breakdown of the fixed rate sooner than the government would like.

The Reaction of Asset Markets to Swiss National Bank Communication

Abstract: In this paper we analyze high-frequency movements in Swiss asset markets in reaction to real-time communication by the Swiss National Bank. Our analysis of central bank communication encompasses monetary policy announcements, speeches and interviews. We examine the reactions of the currency market, the bond market and the stock exchange. The evidence suggests that speeches and interviews, along with monetary policy announcements, engender a significant price reaction. This paper sheds light on the relevance of communications other than monetary policy announcements.