| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 5092209 | Journal of Comparative Economics | 2013 | 9 Pages |
Abstract
Economics and finance typically analyze the exchange rate as the relative price of goods and assets, respectively. By contrast, this paper explores a “money view” which understands the exchange rate as the relative price of money, a price that is determined in dealer markets by the order flow facing profit-seeking dealers. The economics of the FX dealer are analyzed using an extension of Treynor's model of security dealers; central banks are analyzed as FX dealers of last resort.
Keywords
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Perry Mehrling,