The volume of foreign exchange transactions per day amounts to about
70 times the daily international trade of the world.
Clearly 'money' is here acting as a means of payment rather than as
a medium of exchange.
But the scale of the multiplier between the means of payment
transactions
and the underlying exchange is so high that I suspect that there must be
some sort of exponential function determining the ratio between the two.
Do participants
1) think that I am right in assuming that the relationship must be
non-linear?
2) have any theory as to why it should be?