Are bank’s speculative profits at the expense of traders? A reply
The author states that empirical evidence suggests that two types of speculator currently exist in the foreign exchange markets: the first type of speculator simply follows trend movements in exchange rates; the second type anticipates the turning point in trends and thereby turns such runs around....
| Main Author: | |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Associazione Economia civile
2013-10-01
|
| Series: | PSL Quarterly Review |
| Subjects: | |
| Online Access: | https://rosa.uniroma1.it/rosa04/psl_quarterly_review/article/view/10946 |
| _version_ | 1811172541337698304 |
|---|---|
| author | S. SCHULMEISTER |
| author_facet | S. SCHULMEISTER |
| author_sort | S. SCHULMEISTER |
| collection | DOAJ |
| description | The author states that empirical evidence suggests that two types of speculator currently exist in the foreign exchange markets: the first type of speculator simply follows trend movements in exchange rates; the second type anticipates the turning point in trends and thereby turns such runs around. The first type of trade is destabilising and the second type helps to maintain stability. However, both types depend upon an unstable system. Rational operators who attempt to determine fundamental equilibriums appear irrational in terms of the profits they earn. This constitutes a paradox for economic theorists.
JEL: F31, G21
|
| first_indexed | 2024-04-10T17:31:54Z |
| format | Article |
| id | doaj.art-e7e73f5c3e9b4913b51f73e58072f28d |
| institution | Directory Open Access Journal |
| issn | 2037-3635 2037-3643 |
| language | English |
| last_indexed | 2024-04-10T17:31:54Z |
| publishDate | 2013-10-01 |
| publisher | Associazione Economia civile |
| record_format | Article |
| series | PSL Quarterly Review |
| spelling | doaj.art-e7e73f5c3e9b4913b51f73e58072f28d2023-02-03T16:45:48ZengAssociazione Economia civilePSL Quarterly Review2037-36352037-36432013-10-014317410.13133/2037-3643/10946Are bank’s speculative profits at the expense of traders? A replyS. SCHULMEISTERThe author states that empirical evidence suggests that two types of speculator currently exist in the foreign exchange markets: the first type of speculator simply follows trend movements in exchange rates; the second type anticipates the turning point in trends and thereby turns such runs around. The first type of trade is destabilising and the second type helps to maintain stability. However, both types depend upon an unstable system. Rational operators who attempt to determine fundamental equilibriums appear irrational in terms of the profits they earn. This constitutes a paradox for economic theorists. JEL: F31, G21 https://rosa.uniroma1.it/rosa04/psl_quarterly_review/article/view/10946BanksSpeculative tradeForeign exchange marketsStability |
| spellingShingle | S. SCHULMEISTER Are bank’s speculative profits at the expense of traders? A reply PSL Quarterly Review Banks Speculative trade Foreign exchange markets Stability |
| title | Are bank’s speculative profits at the expense of traders? A reply |
| title_full | Are bank’s speculative profits at the expense of traders? A reply |
| title_fullStr | Are bank’s speculative profits at the expense of traders? A reply |
| title_full_unstemmed | Are bank’s speculative profits at the expense of traders? A reply |
| title_short | Are bank’s speculative profits at the expense of traders? A reply |
| title_sort | are bank s speculative profits at the expense of traders a reply |
| topic | Banks Speculative trade Foreign exchange markets Stability |
| url | https://rosa.uniroma1.it/rosa04/psl_quarterly_review/article/view/10946 |
| work_keys_str_mv | AT sschulmeister arebanksspeculativeprofitsattheexpenseoftradersareply |