Empirical Research Of The Network Structure In The Exchange Rate Market Based On Complex Networks

With the development of global economic integration,more and more economies fully opened their market,international competition is more intense and severe,international capital flow of the world's financial markets become more complicated.The fluctuations of the exchange rate market affect every aspect of a country's economy and social activities.To study the exchange rate fluctuations,understand the general rule of currency fluctuations,so that the monetary authorities can be ready to cope with the exchange rate fluctuations and make effective strategies.Due to exchange rate affected by interest rates,inflation and other factors.As the exchange rate volatility affected by different factors.The formation and evolution has revealed a series of complex characteristics.However,traditional theories of international financial markets and exchange rate decision theory has more and more difficult to explain the current exchange rate volatility.The network connection of exchange rate market is complex,its complex fluctuation resulted in the network of exchange rate market has typical characteristics of complex networks.So,to reveal the law of change that network topological properties of internal market offers a new train of thought to study the related exchange rate volatility.Academic circles has been making the application of the research methods of complex networks in the stock market and stock index.But,the network research composited by the correlation of the exchange rate market is still at the early stage.In other words,literature is less.Firstly,this paper based on the theory of complex network,using the whole network analysis method,selected 52 kinds of exchange rate data during January 2007 to December 2016,a total of 3128 sessions in dollar-denominated.Secondly,calculate the correlation coefficient between different monetary,select each annual average of correlation coefficient as the threshold to establish a link between exchange rate networks.The method of threshold is used to construct all the annual whole network.And,the network is without regard to the direction and weight.Thirdly,analysis the complex features of the exchange rate and study the network topology characteristics.Such as,small average path and cluster coefficient.In this paper,the writer tried to verify exchange rate market has the features of the small world.Last,analyze the degree of each node in network of the exchange rate market,do the power analysis,and sort the sequence of the currency by the importance of the nodes.To study the exchange rate fluctuations from the aspect of overall and local point of view helps to find new regularity in exchange rate markets and research on the inner link between various factors.