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THE EFFECTS OF ALTERNATIVE EXCHANGE RATE REGIMES ON REAL EXCHANGE RATE VOLATILITY: EVIDENCE BASED ON A NEW DATASET

✍ Scribed by JORGE CARRERA; GUILLERMO VULETIN

Book ID
115201629
Publisher
Oxford University Press
Year
2011
Tongue
English
Weight
667 KB
Volume
31
Category
Article
ISSN
1074-3529

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The effect of a transaction tax on excha
The effect of a transaction tax on exchange rate volatility
✍ Markku Lanne; Timo Vesala πŸ“‚ Article πŸ“… 2009 πŸ› John Wiley and Sons 🌐 English βš– 139 KB πŸ‘ 1 views

## Abstract We argue that a transaction tax is likely to amplify, not dampen, volatility in foreign exchange markets. Our argument stems from the decentralized trading practice and the presumable discrepancy between β€˜informed’ and β€˜uninformed’ traders' valuations. Given that the informed valuations