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The central bank and speculators in the foreign exchange market under asymmetric information: A strategic approach and evidence

✍ Scribed by Zhaodan Huang

Book ID
116636140
Publisher
Elsevier Science
Year
2007
Tongue
English
Weight
556 KB
Volume
59
Category
Article
ISSN
0148-6195

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## Abstract This paper posits asymmetric information as the missing link between the currency demands of investors and changes in the exchange rate. A theoretical model demonstrates that changes in the exchange rate and currency demand are positively correlated for well‐informed investors and negat