Dynamics of Foreign Exchange Networks: A Time-Varying Copula Approach

Figure 7

The estimated power-law exponent 𝛼 and the corresponding 𝑃 value of degree distribution of MST of 42 currencies in the international FX market as functions of time. In each panel, the red solid line stands for the corresponding statistical average value over the time investigated. In the bottom panel, the yellow solid line represents the value of 0.1. As proposed in [38], if the 𝑃 value is greater than 0.1, the power-law hypothesis is accepted for the investigated data; otherwise it is rejected.