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Chaos In The Currency Markets : Currency Crisis Of The EMS
1. What does the crisis of September 1992 tell you about the relative abilities
of currency markets and national governments to influence exchange rates?
The currency markets and national governments both have abilities to
influence exchange rates. Like other financial markets, foreign exchange markets
react to any news that may have a future effect. Speculators are the part of the
currency markets that take currency positions based on anticipated interest rate
movements in various countries. Day-to-day speculation on future exchange rate
movements is commonly driven by s ....
Word count: 827 - Page count: 4
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