The Crisis in the Foreign Exchange Market

Melvin, Michael; Taylor, Mark P.

Purchase - $8 CEPR Subscribers Download

Add Paper to My Library

The Crisis in the Foreign Exchange Market

CEPR Discussion Paper No. DP7472

38 Pages Posted: 7 Oct 2009

See all articles by Michael Melvin

Michael Melvin

CESifo (Center for Economic Studies and Ifo Institute); University of California, San Diego (UCSD) - Rady School of Management

Mark P. Taylor

Barclays - Barclays Global Investors (London)

There are 2 versions of this paper

Date Written: September 2009

Abstract

We provide an overview of the important events of the recent global financial crisis and their implications for exchange rates and market dynamics. Our goal is to catalogue all that was truly of major importance in this episode. We also construct a quantitative measure of crises that allows for a comparison of the current crisis to earlier events. In addition, we address whether one could have predicted costly events before they happened in a manner that would have allowed market participants to moderate their risk exposures and yield better returns from currency speculation.

Keywords: Financial crisis, foreign exchange market

JEL Classification: F31

Suggested Citation: Suggested Citation

Melvin, Michael and Melvin, Michael and Taylor, Mark P., The Crisis in the Foreign Exchange Market (September 2009). CEPR Discussion Paper No. DP7472, Available at SSRN: https://ssrn.com/abstract=1484505