Were Bid-Ask Spreads in the Foreign Exchange Market Excessive During the Asian Crisis?
Bid-ask spreads for Asian emerging market currencies increased sharply during the Asian crisis. A key question is whether such wide spreads were excessive or explained by models of bid-ask spreads. Precrisis estimates of standard models show that spreads during the crisis were in most cases tighter than spreads predicted by the models and there are few cases of excessive spreads. The result is largely explained by the substantial increase in exchange rate volatility during the crisis and to some extent by the level change. The empirical models have greater explanatory power for emerging - than for mature-market currencies.
Abstract The study discussed here compares and contrasts the findings of recent IS management studies in Australia, Europe, Singapore and the United States. It examines the key concerns of IS executives in these areas, focusing on identifying and explaining regional similarities and differences. IS executives in Australia, Europe, and the US show a reasonable level of agreement on the most critical issues they face. They take a mid- to long-range perspective on their function and are very concerned with planning and managing external relationships. Singaporean managers perceive that their problems are different and several explanations are put forward for understanding this difference. IS executives in multinational firms who are aware of regional differences should be able to manage the IS function more effectively. At a minimum, IS executives must be cognizant of the varying perspectives inherent in a global economy.