Exchange Rate Expectations : Survey of Survey Studies.

This paper presents a brief survey of the empirical literature on survey-based exchange rate expectations. The literature in general supports the presence of a non-zero risk premium and rejects the hypothesis of rational expectations. The crucial result is that, while short-run expectations tend to...

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Detalles Bibliográficos
Autor Corporativo: International Monetary Fund
Formato: Revista
Idioma:English
Publicado: Washington, D.C. : International Monetary Fund, 1990.
Series:IMF Working Papers; Working Paper ; No. 1990/052
Acceso en liña:Full text available on IMF
Descripción
Summary:This paper presents a brief survey of the empirical literature on survey-based exchange rate expectations. The literature in general supports the presence of a non-zero risk premium and rejects the hypothesis of rational expectations. The crucial result is that, while short-run expectations tend to move away from some long-run 'normal' values, long-run expectations tend to regress toward them. If this nature of short-run expectations increases the volatility of exchange rate movements, there may be a basis for some official measure to minimize short-run exchange rate movements.
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Descrición Física:1 online resource (36 pages)
Formato:Mode of access: Internet
ISSN:1018-5941
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