01486cas a2200241 a 4500 AALejournalIMF002926 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451852738 1018-5941 BD-DhAAL BD-DhAAL Tsibouris, George. Persistence in the Variability of Daily Exchange Rates / George Tsibouris. Washington, D.C. : International Monetary Fund, 1991. 1 online resource (26 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students Rational speculation in foreign exchange trading is often assumed to dampen exchange rate fluctuations by bringing the market back to fundamentals. Nevertheless, information congestion provides incentives for traders to follow positive feedback strategies which result in persistent and volatile exchange rate behavior by magnifying the impact of exogenous shocks. Empirical evidence is presented which is consistent with such autocatalytic effects. Mode of access: Internet IMF Working Papers; Working Paper ; No. 1991/104 Full text available on IMF http://elibrary.imf.org/view/journals/001/1991/104/001.1991.issue-104-en.xml IMF e-Library