to lower exchange rate volatility without altering macroeconomic fundamentals. … exchange rate, not by measurable macroeconomic fundamentals. This motivates a theoretical analysis of exchange rate regimes … of noise traders alters the composition of the market and generates excess exchange rate volatility, since noise traders …

technology fundamentals. Negative volatility-price dependence arises if the market dynamics is accounted for by common shocks …The evidence of volatility-price dependence observed in previous works (Karakatsani and Bunn 2004; Bottazzi, Sapio and … Secchi 2005; Simonsen 2005) suggests that there is more to volatility than simply spikes. Volatility is found to be …