The Forward Premium Puzzle Revisited /

The forward premium is a notoriously poor predictor of exchange rate movements. This failure must reflect deviations from risk neutrality and/or rational expectations. In addition, a mechanism is needed that generates the appropriate correlation between the forward premium and shocks arising from ri...

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Detalhes bibliográficos
Autor principal: Meredith, Guy
Outros Autores: Ma, Yue
Formato: Periódico
Idioma:English
Publicado em: Washington, D.C. : International Monetary Fund, 2002.
coleção:IMF Working Papers; Working Paper ; No. 2002/028
Acesso em linha:Full text available on IMF