01735cas a2200253 a 4500 AALejournalIMF008737 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451860535 1018-5941 BD-DhAAL BD-DhAAL Becker, Torbjorn. Were Bid-Ask Spreads in the Foreign Exchange Market Excessive During the Asian Crisis? / Torbjorn Becker, Amadou Sy. Washington, D.C. : International Monetary Fund, 2005. 1 online resource (31 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 Bid-ask spreads for Asian emerging market currencies increased sharply during the Asian crisis. A key question is whether such wide spreads were excessive or explained by models of bid-ask spreads. Precrisis estimates of standard models show that spreads during the crisis were in most cases tighter than spreads predicted by the models and there are few cases of excessive spreads. The result is largely explained by the substantial increase in exchange rate volatility during the crisis and to some extent by the level change. The empirical models have greater explanatory power for emerging- than for mature-market currencies. Mode of access: Internet Sy, Amadou. IMF Working Papers; Working Paper ; No. 2005/034 Full text available on IMF http://elibrary.imf.org/view/journals/001/2005/034/001.2005.issue-034-en.xml IMF e-Library