In a world dominated by large economies with flexible exchange rates and predictable market forces, quantities of currencies bought and sold would warrant very little attention. Models illustrating and explaining foreign exchange markets would focus almost exclusively on prices, i.e. exchange...

Many developing economies of the world today have been building up massive foreign exchange reserves of industrialized economies. A clear example of this is China. In February of 2005, China surpassed Japan as the world's largest holder of foreign exchange reserves. After the Asian Contagion...