I have a question about one of the articles: Baruník J, Kočenda E, Vácha L. Asymmetric volatility connectedness on the forex market[J]. Journal of International Money and Finance, 2017, 77: 39–56. Article Asymmetric volatility connectedness on the forex market
The article mentions using local currency as the base currency, and dollar as the quote currency is commonly used in the literature. This is a typical approach in the forex literature (any potential domestic (US) shocks are integrated into all currency contracts). Could anyone explain why this is the case and what are the advantages and disadvantages of this approach?
Whether direct quotation method or indirect quotation(Dollar Pricing method) method is used in literature, which seems to be a often-confusing topic.
https://ecampusontario.pressbooks.pub/procurement2021/chapter/chapter-5-evaluating-price/
Chuck A Arize
I appreciate your reply, but I’m afraid these links are not helpful for my problem. Some of them are not related to the question. I can easily find website links with newbing, but I’m looking for more in-depth text responses. Could you please share your thoughts or insights on this topic? Thank you.
- Badges
- Science topic
- Similar topics
- Geoscience
- Asia
- India