The Microstructure of Foreign Exchange Markets.

The Microstructure of Foreign Exchange Markets, edited by Jeffrey A. Frankel, Giampaolo Galli, and Alberto Giovannini, is now available from the University of Chicago Press for $55. This book is the product of a July 1994 conference cosponsored by the NBER, the Centre for Economic Policy Research, and the Banca d'Italia. It uses a "microstructure" approach that describes and analyzes the workings of the foreign exchange market, with special emphasis on institutional aspects and the characterization of market participants.

Frankel is the director of the NBER's Research on International Finance and Macroeconomics and a professor of economics at the University of California, Berkeley. Galli is director of the Centro Studi...