Carol L. Osler, Ph.D.
Brandeis University International Business School
Carol L. Osler, Ph.D., is currently Program Director for the Lemberg Masters in International Economics and Finance at the Brandeis International Business School.
Osler's research focuses on currency trading and exchange rates, research that is best represented by her recent survey of the literature. She has been fascinated by the market since visiting Citibank's trading floor in 1986 and serving as Visiting Economist of the Federal Reserve Bank of New York's Foreign Exchange Trading Desk in the early 1990s.
The goal of currency market microstructure research is to develop better models of short-run exchange-rate dynamics, an effort to which Osler and co-authors have contributed. Current working papers provide a new theory of price discovery in currency markets, show that large foreign exchange dealing banks are better informed than small banks, and identify hedge funds as the main source of private information.
While working in the Federal Reserve Bank of New York's Research Department in the early 1990s, Osler noticed that bursting asset-price bubbles were dampening investment. This same pattern was bringing sluggish recovery from the 1991 recession not only in the U.S. but in many other developed countries. These observations led two joint papers with colleague Matthew Higgins on Asset Market Hangovers and Economic Growth.
While at the New York Fed, Osler also investigated technical trading. She tested specific trading signals such as the head-and-shoulders pattern and support and resistance levels. In addition, she identified order clustering as a potential source of the predictive power of certain strategies.
At the Brandeis International Business School, Osler offers a master's-level course in Applied International Macroeconomics. This uses a hands-on approach to help students understand the big macroeconomic challenges of today such as financial crises. Osler also offers a master's-level course on Trading and Exchanges. This teaches the essential concepts of market microstructure and gives students opportunities to practice trading.
Osler received her B.A. from Swarthmore College and her Ph.D. from Princeton University. She taught at the Amos Tuck School of Business at Dartmouth College before joining the New York Fed. Osler has also taught at Columbia University and the Kellogg School at Northwestern University.