Abstract
Studies of chaotic exchange rates often concentrate on empirical aspects. They comb large numbers of data in search of traces of a strange attractor. In contrast, this paper tries to explain how exchange rates may become chaotic. Starting from an assumption about different groups of traders that goes beyond recent models of fundamentalists’ and chartists’ behaviour it emphasizes the need to model the foreign exchange market as a dissipative system and not, as usual, as a closed conservative one.
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References
Allen, H. and M.P. Taylor. 1990. Charts, Noise and Fundamentals in the London Foreign Exchange Market. Economic Journal 400:49–59.
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B. Reszat: Dissipation and Chaos in Foreign Exchange Markets, forthcoming, Utrecht 1992.
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© 1993 Springer-Verlag Berlin Heidelberg
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Reszat, B. (1993). Chaotic Foreign Exchange Rates. In: Karmann, A., Mosler, K., Schader, M., Uebe, G. (eds) Operations Research ’92. Physica, Heidelberg. https://doi.org/10.1007/978-3-662-12629-5_136
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DOI: https://doi.org/10.1007/978-3-662-12629-5_136
Publisher Name: Physica, Heidelberg
Print ISBN: 978-3-7908-0679-3
Online ISBN: 978-3-662-12629-5
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