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dc.contributor.authorDieci, Robertoen_US
dc.contributor.authorWesterhoff, Franken_US
dc.date.accessioned2011-05-13en_US
dc.date.accessioned2011-05-13T14:45:14Z-
dc.date.available2011-05-13T14:45:14Z-
dc.date.issued2011en_US
dc.identifier.isbn978-3-931052-89-8en_US
dc.identifier.urihttp://hdl.handle.net/10419/45551-
dc.description.abstractWe develop a novel financial market model in which the stock markets of two countries are linked via and with the foreign exchange market. To be precise, there are domestic and foreign speculators in each of the two stock markets which rely either on linear technical or linear fundamental trading strategies to determine their orders. Since foreign stock market speculators require foreign currency to conduct their trades, all three markets are connected. Our setup entails a natural nonlinearity which may cause persistent endogenous price dynamics. Moreover, we analytically show that market interactions can destabilize the model's fundamental steady state.en_US
dc.language.isoengen_US
dc.publisherBERG Bambergen_US
dc.relation.ispartofseriesBERG working paper series on government and growth 79en_US
dc.subject.jelC63en_US
dc.subject.jelF31en_US
dc.subject.jelG12en_US
dc.subject.jelG14en_US
dc.subject.ddc330en_US
dc.subject.keywordStock pricesen_US
dc.subject.keywordexchange ratesen_US
dc.subject.keywordmarket stabilityen_US
dc.subject.keywordtechnical and fundamental analysisen_US
dc.subject.keywordnonlinear market interactionsen_US
dc.subject.keywordendogenous dynamicsen_US
dc.titleOn the inherent instability of international financial markets: Natural nonlinear interactions between stock and foreign exchange marketsen_US
dc.typeWorking Paperen_US
dc.identifier.ppn658138065en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US
dc.identifier.repecRePEc:zbw:bamber:79-
Appears in Collections:BERG Working Paper Series, Universität Bamberg

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