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On Risk, Rationality and Excessive Speculation in the Deutschmark-U.S. Dollar Exchange Market: Some Evidence Using Survey Data

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Author Info
MacDonald, Ronald
Torrance, T S

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Abstract

In this paper, the authors argue that survey data on exchange-rate expectations is especially useful fo r testing whether the forward market for foreign exchange is efficien t, since it obviates the need to impose a joint hypothesis on a stand ard efficiency equation. They utilize such data for this purpose for the deutsche mark-U.S. dollar exchange rate over the period 1985.2 to 1986.4. Copyright 1988 by Blackwell Publishing Ltd

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Publisher Info
Article provided by Department of Economics, University of Oxford in its journal Oxford Bulletin of Economics & Statistics.

Volume (Year): 50 (1988)
Issue (Month): 2 (May)
Pages: 107-23
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Handle: RePEc:bla:obuest:v:50:y:1988:i:2:p:107-23

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  1. Imad A. Moosa & Abul Shamsuddin, 2004. "Expectation formation mechanisms, profitability of foreign exchange trading and exchange rate volatility," Applied Economics, Taylor and Francis Journals, vol. 36(14), pages 1599-1606, August. [Downloadable!] (restricted)
  2. Christian Dreger & Georg Stadtmann, 2006. "What Drives Heterogeneity in Foreign Exchange Rate Expectations : Deep Insights from a New Survey," Discussion Papers of DIW Berlin 624, DIW Berlin, German Institute for Economic Research. [Downloadable!]
  3. Agnes Benassy-Quere & Sophie Larribeau & Ronald MacDonald, 1999. "Models of Exchange Rate Expectations : Heterogeneous Evidence From Panel Data," Working Papers 1999-03, CEPII research center. [Downloadable!]
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