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Euro/dollar: Every Body Can Make Mistakes

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Author Info
Agnes Benassy-Quere

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Abstract

Forecasts of exchange rate movements generally have a miserable record. Those complied by Consensus Forecasts concerning the euro have been true to form. Analysing the results of this survey indicates a worrying unanimity of error, which raises questions about the way forecasts are compiled. Are they not a result of herd behaviour? Also, if forecasts influence markets, at least in part, how is it possible to reconcile the expected appreciation of the euro from early 1999 to early 2001 with the depreciation that actually occurred?

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File URL: http://www.cepii.fr/anglaisgraph/publications/lettre/summary/2002/let215ang.htm
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Publisher Info
Article provided by CEPII research center in its journal La Lettre du CEPII.

Volume (Year): (2002)
Issue (Month): 215 (September)
Pages:
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Handle: RePEc:cii:cepill:2002-215

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Related research
Keywords: euro dollar key currencies foreign exchange markets forecasting

Find related papers by JEL classification:
F31 - International Economics - - International Finance - - - Foreign Exchange

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This page was last updated on 2008-10-1.


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