General The aim of IP 12.2 is to determine how to broaden the choice of exchange rate policy for developing countries under financial globalisation. In particular, it will seek policy measures for enhancing the viability and credibility of intermediate exchange rate regimes. The efficacy of such policy measures and interventions depends on how well we understand the structures and operations of currency markets, including traders’ behaviour affecting market efficiency and liquidity.
The research will combine analysis of financial crises and the use of econometric methods to analyse the behaviour of exchange rates given the possibility of economic shocks, whether anticipated or not. Such analysis is qualified by the particular constraints which exist in emerging markets with relatively shallow financial markets. This project will conduct an empirical investigation of the structures of foreign exchange markets in emerging market economies across different regimes, using the recently advanced microstructural theory of market volatility.
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Research Projects 
