Trade Hedging and the Dynamic Stability of the Foreign Exchange Market
用简单差分方程模型研究浮动汇率制下外汇市场的动态特征，发现未对冲贸易交易可能导致市场不稳定，而使用远期市场或人工货币单位进行对冲能显著提高稳定性。
This paper uses a simple difference equation model to investigate the dynamic characteristics of the foreign exchange market under a regime of flexible exchange rates. It is shown that unhedged trade transactions can produce a dynamically unstable market, particularly if contracts are denominated in the seller's currency. We then examine the influence of trade hedging, using either the forward market or an artificial currency unit, and find that it considerably enhances the overall likelihood of stability.