This book provides an alternative view of the workings of foreign exchange markets.
The authors' modeling approach is based on the idea that agents use simple forecasting rules and switch to those rules that have been shown to be the most profitable in the past. This selection mechanism is based on trial and error and is probably the best possible strategy in an uncertain world, the authors contend. It creates a rich dynamic in the foreign exchange markets and can generate bubbles and crashes.
Sensitivity to initial conditions is a pervasive force in De Grauwe and Grimaldi's model. It explains why large exchange-rate changes and volatility clustering occur. It also has important implications for understanding how the news affects the exchange rate. De Grauwe and Grimaldi conclude that news in fundamentals has an unpredictable effect on the exchange rate. Sometimes, they maintain, it alters the exchange rate considerably; at other times it has no effectwhatsoever.
The authors also use their model to analyze the effects of official interventions in the foreign exchange market. They show that simple intervention rules of the "leaning-against-the-wind" variety can be effective in eliminating bubbles and crashes in the exchange rate. They further demonstrate how, quite paradoxically, by intervening in the foreign exchange market the central bank makes the market look more efficient.
Clear and comprehensive, The Exchange Rate in a Behavioral Finance Framework is a must-have for analysts in foreign exchange markets as well as students of international finance and economics.
"synopsis" may belong to another edition of this title.
"Extremely well written, sound, and rigorous. There is no other book of this kind."--Lucio Sarno, University of Warwick
"About this title" may belong to another edition of this title.
Shipping:
US$ 4.00
Within U.S.A.
Book Description Hardcover. Condition: new. New. Fast Shipping and good customer service. Seller Inventory # Holz_New_069112163X
Book Description Condition: new. Seller Inventory # FrontCover069112163X
Book Description Hardcover. Condition: new. New Copy. Customer Service Guaranteed. Seller Inventory # think069112163X
Book Description Hardcover. Condition: new. New. Seller Inventory # Wizard069112163X
Book Description Hardcover. Condition: new. Buy for Great customer experience. Seller Inventory # GoldenDragon069112163X
Book Description Condition: New. Seller Inventory # 127243
Book Description Condition: New. New. In shrink wrap. Looks like an interesting title! 1.01. Seller Inventory # Q-069112163X
Book Description TAPA DURA. Condition: New. Seller Inventory # 100765855
Book Description Condition: New. Buy with confidence! Book is in new, never-used condition. Seller Inventory # bk069112163Xxvz189zvxnew
Book Description Hardcover. Condition: new. This item is printed on demand. Seller Inventory # 9780691121635