I review the recent literature that applies search-and-matching theory to the study of over-the-
counter financial markets. I formulate and solve a simple model to illustrate the typical …

Foreign exchange market refers to the market in which currencies from around the world are
traded. It allows investors to buy or sell a currency of their choice. Forex interests several …

The massive stocks of foreign exchange reserves, mostly held in the form of US T-bonds by
emerging economies, are still an important puzzle. Why do emerging economies continue to …

Since it is one of the world's most significant financial markets, the foreign exchange (Forex)
market has attracted a large number of investors. Accurately anticipating the forex trend has …

Currency choices in international trade are related to the depth of financial markets,
especially in the provision of trade finance. This paper examines:(i) how this financial …

Building on recent work in monetary theory and finance, we develop a framework where
money serves a double liquidity role, namely, it serves as a medium of exchange in goods …

A two-country general equilibrium model is developed to study the global consequences of
quantitative easing and foreign exchange intervention. The model incorporates financial …

This article develops a model in which market structure is determined endogenously by the
choice of intermediation mode. There are two representative modes of intermediation that …

We study endogenous intermediation activity, the implied transaction pattern—direct trade,
indirect trade, or both—and implications for efficiency. Related papers have agents …

This article finds novel evidence on the uncovered equity parity (UEP) condition by
employing copula methodology with historical datasets spanning back to 1870. First, across …