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

To continue reading...

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 indvidual account here: