EconPapers    
Economics at your fingertips  
 

The Microstructure Approach to Exchange Rates, vol 1

Richard Lyons ()

in MIT Press Books from The MIT Press

Abstract: Historically, the fields of exchange-rate economics and microstructure finance have progressed independently of each other. Recent interaction, however, has given rise to a microstructure approach to exchange rates. This book focuses on the economics of financial information and how microstructure tools help to clarify the types of information most relevant to exchange rates. The microstructure approach views exchange rates from the perspective of the trading room, the place where exchange rates are actually determined. Emphasizing information economics over institutional issues, the approach departs from three unrealistic assumptions common to previous approaches: that all information relevant to exchange rates is publicly available, that all market participants are alike in their goals or in how they view information, and that how trading is organized is inconsequential for exchange rates. The book shows how exchange-rate behavior previously thought to be particularly puzzling can be explained using the microstructure approach. It contains a combination of theoretical and empirical work.

Keywords: exchange rates; microstructure finance (search for similar items in EconPapers)
JEL-codes: F31 G0 (search for similar items in EconPapers)
Date: 2006
Edition: 1
ISBN: 0-262-62205-X
References: Add references at CitEc
Citations: View citations in EconPapers (92) Track citations by RSS feed

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:mtp:titles:026262205x

Access Statistics for this book

More books in MIT Press Books from The MIT Press
Bibliographic data for series maintained by Kristin Waites (). This e-mail address is bad, please contact .

 
Page updated 2020-07-14
Handle: RePEc:mtp:titles:026262205x