| Description |
1 online resource (38 pages) : illustrations, map, tables |
|
text file |
| Series |
IMF Working Papers.
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| Summary |
We study the impact of technology on the reaction of financial markets to information, focusing on the foreign exchange market. We contrast the "thin-skinned" view that technological improvements cause markets to react more to new information with the "thick-skinned" view that they react less. We pinpoint exogenous technological changes using the timing of the connection of countries via the submarine fiber-optic cables used for electronic trading. Cable connections dampen the response of exchange rates to macroeconomic news, consistent with the "thick-skinned" hypothesis. This is in line with the view that technology eases access to information and reduces trend-following behavior. According to our estimates, cable connections reduce the reaction of exchange rates to U.S. monetary policy news by 50 to 80 percent. |
| Local Note |
eBooks on EBSCOhost EBSCO eBook Subscription Academic Collection - North America |
| Subject |
Economic development.
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|
Economic development. |
| Genre/Form |
Electronic books.
|
| Added Author |
Lafarguette, Romain, author.
|
|
Mehl, Arnaud, author.
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| Other Form: |
Print version: Eichengreen, Barry J. Thick vs. Thin-Skinned: Technology, News, and Financial Market Reaction Washington, D.C. : International Monetary Fund,2017 9781475593488 |
| ISBN |
147559481X (electronic book) |
|
9781475594812 (electronic book) |
|
1475593481 |
|
9781475593488 |
| ISSN |
1018-5941 |
| Standard No. |
10.5089/9781475593488.001 |
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