Exchange Rates
By Bob
This post by Stephen Kirchner reminds me of conversation I had a month ago with a visiting prof with a similar background to mine in trading. It went something like this:
Visiting Prof: So, are you doing any trading?
Me: No, not really but this market seems to be heading higher
Visiting Prof: Yes, but I have a dollar short here against the Euro. It's worked out well with European interest rates heading higher.
Me: Don't you find it odd that how the financial markets view currency movements is much different than how academic economists explain them?
He laughed as an acknowledgement