Experimental Analysis on the Role of a Large Speculator in Currency Crises
Author | : Yasuhiro Arikawa |
Publisher | : |
Total Pages | : 48 |
Release | : 2006 |
ISBN-10 | : UCSD:31822034974980 |
ISBN-13 | : |
Rating | : 4/5 (80 Downloads) |
Download or read book Experimental Analysis on the Role of a Large Speculator in Currency Crises written by Yasuhiro Arikawa and published by . This book was released on 2006 with total page 48 pages. Available in PDF, EPUB and Kindle. Book excerpt: Corsetti, Dasgupta, Morris, and Shin (2004, RES) demonstrate that the presence of the large speculator can cause the remaining traders to be more aggressive in speculative attacks in the foreign exchange market. We conduct an experimental analysis designed to test theoretical findings of Corsetti, Dasgupta, Morris, and Shin (2004, RES); in fact the results support their theoretical predictions. Moreover, the results also suggest an asymmetric effect in regulating and deregulating the size of the large speculator.--Authors' abstract.