La speculazione su cambi esteri ed i trasferimenti internazionali di fondi privati (parte prima) (The role of commercial banks in foreign exchange speculation)

• Main Author: B. CUTILLI
• Format: Article
• Language: Italian
• Published: Associazione Economia civile 2014-07-01
• Series: Moneta e Credito
• Subjects: Banks, foreign exchange speculation, monetary authorities, exchange rate
• Online Access: http://ojs.uniroma1.it/index.php/monetaecredito/article/view/12401

<p dir="ltr">The article suggests that, contrary to popular belief, banks can play a useful role in foreign exchange speculation if they are given a chance to draw a permanent profit from it and are convinced of the ability of the monetary authorities to maintain the exchange rate within certain pre-established boundaries. The author proposes a model to argue that banks’ speculative activity is beneficial both in stabilising the exchange rate in the face of non-speculators’ operation and in repelling a sudden attack by occasional speculators.</p><span><span><br /></span></span><p dir="ltr">JEL: F31, G21, E58</p><div><span><br /></span></div>