Series: IMF Working Papers
Author(s): Jay Surti
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 01 February 2004
Keywords: Preemptive Trade, Coordination Risk, Market Size Effect, central bank, exchange rate, domestic currency, exchange rate regime, Open Economy Macroeconomics,
This paper develops a theory of the onset of financial crises by solving for the optimal trading strategies of speculators in financial markets, in a model where each speculator tries to coordinate her trades with...