Order Flow in the South: Anatomy of the Brazilian FX Market

Abstract

This paper analyses one of the main pillars of Brazil’s newly found economic resilience: a maturing FX market providing support to its managed ‡oating exchange rate regime. I develop a microstrucure model suitable to describe the Brazilian FX market, an emerging economy frequently subjected to sudden stops in capital ‡ows. The model introduces two major… (More)

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