Exchange-Rate Flexibility and the Efficiency of the Foreign-Exchange Markets

Timing Foreign Exchange Markets

Priced level, slope, and volatility risk factors recently proposed in the finance literature help explain long-standing puzzles related to the cross-section of carry trade returns. In this paper, we examine whether the information contained in these global factors allows foreign exchange market speculators in individual currencies to successfully time the direction of their carry trades, both w...

Time and foreign exchange markets

The definition of time is still an open question when one deals with high frequency time series. If time is simply the calendar time, prices can be modeled as continuous random processes and values resulting from transactions or given quotes are discrete samples of this underlying dynamics. On the contrary, if one takes the business time point of view, price dynamics is a discrete random proces...

The Appropriate Exchange Rate System and the Regulation and Forecast of Exchange Rate for Iran's Economy

Efficiency of Foreign Exchange Markets: a Developing Country Perspective

This study tests weak and semi-strong form efficiency of the foreign exchange market in Sri Lanka during the recent float using six bilateral exchange rates. Weak-form efficiency is examined using unit root tests while semi-strong form efficiency is tested using co-integration, Granger causality tests and variance decomposition analysis. Results indicate that the Sri Lankan foreign exchange mar...

Measuring the Real Exchange Rate Misalignment and the Factors Affecting it in the OPEC Member Countries (Emphasizing on the Capital Account Openness and Exchange Rate Flexibility)

Changes in the real exchange rate affect a country's balance of payments and international competitiveness, and its misalignment from the long-run equilibrium level usually creates imbalances in the macro economy. This is also important in countries with oil resources due to their foreign trade structure. Accordingly, due to the existence of few internal studies on the subject in selected count...