We leverage supervisory microdata to uncover the role of global banks' risk limits in driving exchange rate dynamics … quantity adjustments in the foreign exchange market. We show that dealers adjust their net position and increase the bid …. These shocks exacerbate the effects of net currency demand on exchange rate movements, as predicted by theory, and trigger …

We extend the multi-country, multi-sector agent-based model in Dosi et al. (2019, 2021) by incorporating an exchange … rate market where heterogeneous chartist and fundamentalist financial traders exchange foreign currencies. This introduces … complex interactions between the real and financial side of the economies that reverberate on the dynamics of the exchange …

of foreign exchange from foreign trade transactions, due to (i) a steady rise in the share of export contracts … effective at stabilising the exchange rate. However, despite this and a sharp rise in the policy rate of 7.5 pp in total since …

This paper provides novel estimations of a non-linear exchange rate pass-through dependent on inflation for Sweden …-through from an exchange rate depreciation shock to consumer prices depends on the level of inflation, reaching 17.4% in the high … periods of both low and high inflation, as well as substantial exchange rate depreciations. The pass-through is also estimated …

, implicitly, both models reaffirm the extreme neutrality of money and the exchange rate in both the short and the long runs. In … contrast, we analyze the post-Keynesian exchange rate model proposed by John T. Harvey (2009). In addition, we rely on the … relevance of capital flows for the determination of the exchange rate and its implications for economic growth and prices by Jan …