A Perspectiveon Predicting Currency Crises /

Currency crises are difficult to predict. It could be that we are choosing the wrong variables or using the wrong models or adopting measurement techniques not up to the task. We set up a Monte Carlo experiment designed to evaluate the measurement techniques. In our study, the methods are given the...

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Autor principal: Flood, Robert
Altres autors: Marion, Nancy, Yepez, Juan
Format: Revista
Idioma:English
Publicat: Washington, D.C. : International Monetary Fund, 2010.
Col·lecció:IMF Working Papers; Working Paper ; No. 2010/227
Accés en línia:Full text available on IMF
Descripció
Sumari:Currency crises are difficult to predict. It could be that we are choosing the wrong variables or using the wrong models or adopting measurement techniques not up to the task. We set up a Monte Carlo experiment designed to evaluate the measurement techniques. In our study, the methods are given the right fundamentals and the right models and are evaluated on how closely the estimated predictions match the objectively correct predictions. We find that all methods do reasonably well when fundamentals are explosive and all do badly when fundamentals are merely highly volatile.
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Descripció física:1 online resource (28 pages)
Format:Mode of access: Internet
ISSN:1018-5941
Accés:Electronic access restricted to authorized BRAC University faculty, staff and students