Market power can explain financial market anomalies – BIS paper

FX currencies

In a new paper, a team of researchers studies how the behaviour of intermediaries in the foreign exchange market explains a number of anomalies.

In An Intermediation-Based Model of Exchange Rates, published by the Bank for International Settlements, the authors develop two models: a domestic model where households have free access to domestic financial securities; and an international model where households must use intermediaries to gain access to global financial securities.

Semyon Malamud

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Central Banking? View our subscription options

Register for Central Banking

All fields are mandatory unless otherwise highlighted

This address will be used to create your account

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account

.