Engel and Rogers (1996) find that crossing the US-Canada border can considerably raise relative price volatility and … that exchange rate fluctuations explain about one-third of the volatility increase. In re-evaluating the border effect …, this study shows that cross-country heterogeneity in price volatility can lead to significant bias in measuring the border …

spot rates affect futures data and vice versa. In addition, there is evidence of volatility spillover between the two … the mean and volatility of cash market price movements than the other way around …

) speculation is generally viewed positively, as enhancing market efficiency and liquidity, even though it exacerbates volatility … increases volatility, and finally; (x) traders do not view purchasing power parity as a useful concept, even though a …