Book Cover
Author Grauwe, Paul de.

Title The exchange rate in a behavioral finance framework / Paul De Grauwe, Marianna Grimaldi
Published Princeton, N.J. : Princeton University Press, [2006]


Location Call no. Vol. Availability
 MELB  332.456 Gra/Eri  AVAILABLE
Description x, 200 pages : illustrations ; 24 cm
Contents 1. The need for a new paradigm -- 2. A simple behavioral finance model of the exchange rate -- 3. A slightly more complex behavioral finance model -- 4. Limits to arbitrage -- 5. Changes in the perception of risk -- 6. Modeling the supply of foreign assets and the current account -- 7. Risk appetite in an evolutionary perspective -- 8. The empirical evidence -- 9. Official interventions in the foreign exchange markets -- 10. Chaos in the foreign exchange markets
Summary "This book provides an alternative view of the workings of foreign exchange markets." "The author's modeling approach is based on the idea that agents use simple forecasting rules and switch to those rules that have been shown to be the most profitable in the past. This selection mechanism is based on trial and error and is probably the best possible strategy in a very uncertain world, the authors contend. It creates a rich dynamic in the foreign exchange markets and can generate bubbles and crashes."--BOOK JACKET
Notes Includes index
Bibliography Bibliography: pages [191]-196
Subject Foreign exchange rates -- Political aspects.
Foreign exchange rates -- Psychological aspects.
Author Grimaldi, Marianna.
LC no. 2006920668
ISBN 069112163X (hbk.)