FX Market and Economic Growth

Afternoon! Just having my first day of fasting.. Boy I'm sleepy.

Oyeah, I won best net overall of golf yesterday, played 81 with handicap 25, I played net 56. hua ha ha... has any pro player played 56 ? only amateur can do it.. he he he..

Back to FX Market.
Read a couple of articles on Financial depth and economic growth, and they say the relationship is quiet (or quite?) strong. Means, the deeper the financial market, the higher the economic growth.

Sholat dulu ah... be back later..

Hi..
Mohsin Khan and Abdelhak Senhadji in their paper Financial Development and Economic Growth: An Overview, DEc. 2000, mention that "The results in this paper confirm the strong positive and statistically significant relationship between financial depth and growth in the cross section analysis."
What can be inferred from this sentence? As I mentioned earlier, the deeper the financial market, the higher the economic growth. It also means that, the deeper the FX Market, which also part of financial market, the higher the economic growth. How can be the FX Market depth influence the economic growth. Well, I think it simply because of the deeper the FX market means, the higher the volume of FX transactions, the higher the FX supply and demand, reflects the higher market players want to transact (could be to fulfill their FX needs for export/import), means the higher the economy's movement --> means growth.

Therefore, Indonesian FX market must be deep, to reflect the economic growth. What happen in Indonesia right now is that growth is high, but no movement in the fx market... well, what can you say? its Indonesia....