Strategic Trading When Central Bank Intervention Is Predictable

Market prices are noisy signals of economic fundamentals. Liyan Yang suggests that if the central bank uses market prices as guidance for intervention, large strategic investors may temporarily depress market prices to induce a market-supportive intervention.

Image courtesy of Liyan Yang

Leave a Reply

Your email address will not be published. Required fields are marked *

As a Guest, you have insight(s) remaining for this month. Create a free account to view 300 more annually.
Related Posts

Add the Faculti Web App to your Mobile or Desktop homescreen