The article, entitled Information Revelation in Decentralized Markets, proposes a new methodology to map informational links in a network of financial markets. The authors test the new tool in a setting of foreign exchange dealers in 2015, including the influential event when the Swiss National Bank decided to discontinue the Swiss Franc peg to the Euro. The analysis of the event shows how an informational network emerges as the market transitions from no‐learning to learning, that is, from a fixed to a floating rate.
The article is available here. A popular summary is available at Albert Menkveld’s blog.
