Empirical Exchange Rate Models of the Nineties : Are Any Fit to Survive? /

We reassess exchange rate prediction using a wider set of models that have been proposed in the last decade. The performance of these models is compared against two reference specifications-purchasing power parity and the sticky-price monetary model. The models are estimated in first-difference and...

Descripció completa

Dades bibliogràfiques
Autor principal: Cheung, Yin-Wong
Altres autors: Chinn, Menzie, Garcia Pascual, Antonio
Format: Revista
Idioma:English
Publicat: Washington, D.C. : International Monetary Fund, 2004.
Col·lecció:IMF Working Papers; Working Paper ; No. 2004/073
Accés en línia:Full text available on IMF
Descripció
Sumari:We reassess exchange rate prediction using a wider set of models that have been proposed in the last decade. The performance of these models is compared against two reference specifications-purchasing power parity and the sticky-price monetary model. The models are estimated in first-difference and error-correction specifications, and model performance is evaluated at forecast horizons of 1, 4, and 20 quarters, using the mean squared error, direction of change metrics, and the "consistency" test of Cheung and Chinn (1998). Overall, model/specification/currency combinations that work well in one period do not necessarily work well in another period.
Descripció de l’ítem:<strong>Off-Campus Access:</strong> No User ID or Password Required
<strong>On-Campus Access:</strong> No User ID or Password Required
Descripció física:1 online resource (37 pages)
Format:Mode of access: Internet
ISSN:1018-5941
Accés:Electronic access restricted to authorized BRAC University faculty, staff and students