---
title: Exchange Rate Disconnect with Disagreeing Arbitrageurs
url: https://www.ml-quant.com/papers/ssrn/7671358/
site: ML-Quant (https://www.ml-quant.com)
updated: 2026-11-06
license: Summaries CC BY 4.0; links go to the original sources
index: https://www.ml-quant.com/llms.txt
identifier: SSRN 7671358
source_url: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=7671358
featured: 2026-11-06
citations: unknown
topic: Macro-Finance & Rates
---


# Exchange Rate Disconnect with Disagreeing Arbitrageurs

Models how wealth redistribution among arbitrageurs with different beliefs amplifies exchange rate volatility and generates interest-parity wedges, accounting for 62 percent of observed variance.

- Source: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=7671358
- Identifier: SSRN 7671358
- Released: 2026-11-03
- First featured: Quant Letter No. 138 (2026-11-06): https://www.ml-quant.com/issues/2026-11-06/
- Citations (Semantic Scholar): not tracked
- Published in: not yet
- Topic: Macro-Finance & Rates
- Authors: Rikuto Onishi

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