Chaotic Foreign Exchange Rates
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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- B. Reszat: Dissipation and Chaos in Foreign Exchange Markets, forthcoming, Utrecht 1992.Google Scholar