Li, Mei; Milne, Frank - In: Journal of Financial Intermediation 23 (2014) 4, pp. 590-620
This paper studies the role of a large trader in a dynamic currency attack model based on Abreu and Brunnermeier (2003), who study stock market bubbles and crashes in a dynamic model with a continuum of rational small traders. We introduce a large trader into their model and apply it to currency...