Stabilizing speculation


 

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Stabilizing speculation

Speculation that decreases the movements of the price in the market where the speculation occurs. See destabilizing speculation. Freedman (1953) provided a classic argument that speculation on a floating exchange rate would be stabilizing.



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Destabilizing speculation

Destabilizing speculation

Speculation that increases the movements of the price in the market where the speculation occurs. Movement may be defined by amplitude, frequency, or some other measure. See stabilizing speculation.




 
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