The Art of Currency Manipulation : How to Profiteer by Deliberately Distorting Exchange Rates
A frequent charge in foreign exchange markets in developing countries is that of manipulators being at work. Since to buy is to raise prices and to sell is to lower prices, the question that naturally arises is whether the widespread charge of mark...
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
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World Bank, Washington, DC
2014
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| Online Access: | http://documents.worldbank.org/curated/en/2013/09/18269054/art-currency-manipulation-profiteer-deliberately-distorting-exchange-rates http://hdl.handle.net/10986/16835 |
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okr-10986-168352021-04-23T14:03:32Z The Art of Currency Manipulation : How to Profiteer by Deliberately Distorting Exchange Rates Basu, Kaushik AUCTIONS CENTRAL BANK CENTRAL BANKS CLARITY COLLATERAL COMPETITIVE MARKETS CONDITIONAL SALE CONTINUOUS AUCTIONS CURRENCY CURRENCY DEPRECIATION DEMAND FUNCTION DEPRECIATIONS DERIVATIVES DEVELOPING COUNTRIES DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DOMESTIC CURRENCY DOMESTIC MARKET DUOPOLY EMERGING ECONOMIES EMERGING MARKET EMERGING MARKET ECONOMIES EQUILIBRIA EQUILIBRIUM EQUILIBRIUM BEHAVIOR EQUILIBRIUM PRICE EQUILIBRIUM PRICES EXCHANGE RATE EXCHANGE RATE FLUCTUATIONS EXCHANGE RATE MOVEMENTS EXCHANGE RATES FINANCIAL INSTITUTIONS FINANCIAL STUDIES FOREIGN CURRENCY FOREIGN EXCHANGE FOREIGN EXCHANGE MARKET FOREIGN EXCHANGE MARKETS FOREIGN EXCHANGE RESERVES FOREIGN EXCHANGE RISK FORWARD MARKETS FUTURES FUTURES MARKETS GAME THEORY INSIDER TRADING INTEREST RATES INTERNATIONAL BANK INTERNATIONAL ECONOMICS MARKET ECONOMIES MARKET MANIPULATION MARKET PLAYERS MARKET POWER MARKET PRICE MARKET REGULATORS MARKET STRUCTURE MONOPOLY NASH EQUILIBRIUM OLIGOPOLY PRICE CHANGE PRICE LEVEL PRICE MOVEMENTS REGULATOR REGULATORS SALE STOCK MARKET SUPPLY FUNCTIONS TREASURIES UNCERTAINTY WEALTH A frequent charge in foreign exchange markets in developing countries is that of manipulators being at work. Since to buy is to raise prices and to sell is to lower prices, the question that naturally arises is whether the widespread charge of market manipulation is valid. The paper shows that (whether or not "widespreadness" has any merit) it is possible for a player to manipulate and profiteer. By using some simple principles of game theory, the paper outlines a strategy that a manipulator may use. The aim of this paper is not to provide a manual for the manipulator but to enable the regulator to understand the art and develop policies to curb manipulation. 2014-02-03T21:17:09Z 2014-02-03T21:17:09Z 2013-09 http://documents.worldbank.org/curated/en/2013/09/18269054/art-currency-manipulation-profiteer-deliberately-distorting-exchange-rates http://hdl.handle.net/10986/16835 English en_US Policy Research Working Paper;No. 6608 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
AUCTIONS CENTRAL BANK CENTRAL BANKS CLARITY COLLATERAL COMPETITIVE MARKETS CONDITIONAL SALE CONTINUOUS AUCTIONS CURRENCY CURRENCY DEPRECIATION DEMAND FUNCTION DEPRECIATIONS DERIVATIVES DEVELOPING COUNTRIES DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DOMESTIC CURRENCY DOMESTIC MARKET DUOPOLY EMERGING ECONOMIES EMERGING MARKET EMERGING MARKET ECONOMIES EQUILIBRIA EQUILIBRIUM EQUILIBRIUM BEHAVIOR EQUILIBRIUM PRICE EQUILIBRIUM PRICES EXCHANGE RATE EXCHANGE RATE FLUCTUATIONS EXCHANGE RATE MOVEMENTS EXCHANGE RATES FINANCIAL INSTITUTIONS FINANCIAL STUDIES FOREIGN CURRENCY FOREIGN EXCHANGE FOREIGN EXCHANGE MARKET FOREIGN EXCHANGE MARKETS FOREIGN EXCHANGE RESERVES FOREIGN EXCHANGE RISK FORWARD MARKETS FUTURES FUTURES MARKETS GAME THEORY INSIDER TRADING INTEREST RATES INTERNATIONAL BANK INTERNATIONAL ECONOMICS MARKET ECONOMIES MARKET MANIPULATION MARKET PLAYERS MARKET POWER MARKET PRICE MARKET REGULATORS MARKET STRUCTURE MONOPOLY NASH EQUILIBRIUM OLIGOPOLY PRICE CHANGE PRICE LEVEL PRICE MOVEMENTS REGULATOR REGULATORS SALE STOCK MARKET SUPPLY FUNCTIONS TREASURIES UNCERTAINTY WEALTH |
| spellingShingle |
AUCTIONS CENTRAL BANK CENTRAL BANKS CLARITY COLLATERAL COMPETITIVE MARKETS CONDITIONAL SALE CONTINUOUS AUCTIONS CURRENCY CURRENCY DEPRECIATION DEMAND FUNCTION DEPRECIATIONS DERIVATIVES DEVELOPING COUNTRIES DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DOMESTIC CURRENCY DOMESTIC MARKET DUOPOLY EMERGING ECONOMIES EMERGING MARKET EMERGING MARKET ECONOMIES EQUILIBRIA EQUILIBRIUM EQUILIBRIUM BEHAVIOR EQUILIBRIUM PRICE EQUILIBRIUM PRICES EXCHANGE RATE EXCHANGE RATE FLUCTUATIONS EXCHANGE RATE MOVEMENTS EXCHANGE RATES FINANCIAL INSTITUTIONS FINANCIAL STUDIES FOREIGN CURRENCY FOREIGN EXCHANGE FOREIGN EXCHANGE MARKET FOREIGN EXCHANGE MARKETS FOREIGN EXCHANGE RESERVES FOREIGN EXCHANGE RISK FORWARD MARKETS FUTURES FUTURES MARKETS GAME THEORY INSIDER TRADING INTEREST RATES INTERNATIONAL BANK INTERNATIONAL ECONOMICS MARKET ECONOMIES MARKET MANIPULATION MARKET PLAYERS MARKET POWER MARKET PRICE MARKET REGULATORS MARKET STRUCTURE MONOPOLY NASH EQUILIBRIUM OLIGOPOLY PRICE CHANGE PRICE LEVEL PRICE MOVEMENTS REGULATOR REGULATORS SALE STOCK MARKET SUPPLY FUNCTIONS TREASURIES UNCERTAINTY WEALTH Basu, Kaushik The Art of Currency Manipulation : How to Profiteer by Deliberately Distorting Exchange Rates |
| relation |
Policy Research Working Paper;No. 6608 |
| description |
A frequent charge in foreign exchange
markets in developing countries is that of manipulators
being at work. Since to buy is to raise prices and to sell
is to lower prices, the question that naturally arises is
whether the widespread charge of market manipulation is
valid. The paper shows that (whether or not
"widespreadness" has any merit) it is possible for
a player to manipulate and profiteer. By using some simple
principles of game theory, the paper outlines a strategy
that a manipulator may use. The aim of this paper is not to
provide a manual for the manipulator but to enable the
regulator to understand the art and develop policies to curb manipulation. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Basu, Kaushik |
| author_facet |
Basu, Kaushik |
| author_sort |
Basu, Kaushik |
| title |
The Art of Currency Manipulation : How to Profiteer by Deliberately Distorting Exchange Rates |
| title_short |
The Art of Currency Manipulation : How to Profiteer by Deliberately Distorting Exchange Rates |
| title_full |
The Art of Currency Manipulation : How to Profiteer by Deliberately Distorting Exchange Rates |
| title_fullStr |
The Art of Currency Manipulation : How to Profiteer by Deliberately Distorting Exchange Rates |
| title_full_unstemmed |
The Art of Currency Manipulation : How to Profiteer by Deliberately Distorting Exchange Rates |
| title_sort |
art of currency manipulation : how to profiteer by deliberately distorting exchange rates |
| publisher |
World Bank, Washington, DC |
| publishDate |
2014 |
| url |
http://documents.worldbank.org/curated/en/2013/09/18269054/art-currency-manipulation-profiteer-deliberately-distorting-exchange-rates http://hdl.handle.net/10986/16835 |
| _version_ |
1764434645519171584 |