The Microstructure Approach to Exchange Rates
by: Richard K. Lyons
en | The MIT Press
026212243X 9780262122436 026262205X 9780262622059
The Microstructure Approach to Exchange Rates
By Richard K. Lyons
Publisher: The MIT Press
Number Of Pages: 345
Publication Date: 2001-12-01
ISBN-10 / ASIN: 026212243X
ISBN-13 / EAN: 9780262122436
Product Description:
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.
Summary: This one deserves recognition
Rating: 5
This book changed the way I trade FX and the way I look at markets in general. Though it was above my education level the author wrote concisely and clearly so that I understood the concepts well enough to move forward in my own studies. Wonderful book.
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