Handbook of Exchange Rates

<p><b>Praise for <i>Handbook of Exchange Rates</i></b></p> <p>“This book is remarkable. I expect it to become <i>the</i> anchor reference for people working in the foreign exchange field.”</p> <p><i>—Richard K. Lyons, Dean and Professor of Finance,</i> <i>Haas School of Business, University of California Berkeley</i></p> <p>“It is quite easily the most wide ranging treaty of expertise on the forex market I have ever come across. I will be keeping a copy close to my fingertips.”</p> <p><i>—Jim O’Neill, Chairman, Goldman Sachs Asset Management</i></p> <p>How should we evaluate the forecasting power of models? What are appropriate loss functions for major market participants? Is the exchange rate the only means of adjustment? <i>Handbook of Exchange Rates</i> answers these questions and many more, equipping readers with the relevant concepts and policies for working in today’s international economic climate.</p> <p>Featuring contributions written by leading specialists from the global financial arena, this handbook provides a collection of original ideas on foreign exchange (FX) rates in four succinct sections:</p> <p>• <i>Overview</i> introduces the history of the FX market and exchange rate regimes, discussing key instruments in the trading environment as well as macro and micro approaches to FX determination.</p> <p>• <i>Exchange Rate Models and Methods</i> focuses on forecasting exchange rates, featuring methodological contributions on the statistical methods for evaluating forecast performance, parity relationships, fair value models, and flow–based models.</p> <p>• <i>FX Markets and Products</i> outlines active currency management, currency hedging, hedge accounting; high frequency and algorithmic trading in FX; and FX strategy-based products.</p> <p>• <i>FX Markets and Policy</i> explores the current policies in place in global markets and presents a framework for analyzing financial crises.</p> <p>Throughout the book, topics are explored in-depth alongside their founding principles. Each chapter uses real-world examples from the financial industry and concludes with a summary that outlines key points and concepts.</p> <p><i>Handbook of Exchange Rates</i> is an essential reference for fund managers and investors as well as practitioners and researchers working in finance, banking, business, and econometrics. The book also serves as a valuable supplement for courses on economics, business, and international finance at the upper-undergraduate and graduate levels.</p>