THE MICROSTRUCTURE OF A SMALL FOREIGN EXCHANGE MARKET IN A LONG-TERM PEGGED EXCHANGE RATE REGIME: BARBADOS
msra(2006)
摘要
This paper is a first analysis of daily transactions in the foreign exchange market of Barbados, a small open economy that has had an unchanged peg to the U.S. dollar for over 30 years. As a result of the credibility of the peg, we expect that capital flows will respond to differentials between U.S. and comparable Barbadian interest rates, and that these capital flows will result in uncovered interest parity between the Barbadian and the U.S. financial markets, when allowance is made for market frictions and large discrete events. Our results appear to confirm the existence of uncovered interest parity during the period of analysis.
更多查看译文
关键词
foreign exchange,exchange rate,interest parity,financial market,uncovered interest parity,microstructures,interest rate,foreign exchange market
AI 理解论文
溯源树
样例
生成溯源树,研究论文发展脉络