We introduce a continuous-time principal-agent model where the agent can privately influence both the drift and diffusion of the cash flows. The total diffusion is the product of the agent's volatility choice and a stochastic volatility process that is unobservable to the principal. This model...

The effects of the adoption of the IMF's International Reserves and Foreign Currency Liquidity Data Template on nominal exchange rate volatility are investigated for 48 countries. Estimation of panel data models indicates that nominal exchange rate volatility decreases following dissemination of...