Advanced Search
MyIDEAS: Login to save this article or follow this journal

Is There a Peso Problem? Evidence from the Dollar/Pound Exchange Rate, 1976-1987

Contents:

Author Info

  • Kaminsky, Graciela

Abstract

One of the most puzzling aspects of the floating-exchange-rate regime since 1973 has been the apparent irrationality embedded in investors' exchange-rate expectations. This paper investigates whether exchange-rate forecasts, although biased, are still rational. The idea is that investors can be rational and yet make repeated mistakes if the true model of the exchange rate is evolving over time. The author's results support the hypothesis that the exchange rate has followed a switching-regime process. Moreover, the switching-regime model estimated can explain about 75 percent of the bias implied by the forward market and the survey data. Copyright 1993 by American Economic Association.

Download Info

To our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.

Bibliographic Info

Article provided by American Economic Association in its journal American Economic Review.

Volume (Year): 83 (1993)
Issue (Month): 3 (June)
Pages: 450-72

as in new window
Handle: RePEc:aea:aecrev:v:83:y:1993:i:3:p:450-72

Contact details of provider:
Email:
Web page: https://www.aeaweb.org/aer/
More information through EDIRC

Order Information:
Web: https://www.aeaweb.org/subscribe.html

Related research

Keywords:

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
This item has more than 25 citations. To prevent cluttering this page, these citations are listed on a separate page.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:aea:aecrev:v:83:y:1993:i:3:p:450-72. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jane Voros) or (Michael P. Albert).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.