The Role of Fundamentalists and Technicians in Exchange Rate Determination
A model relating changes in the exchange rate to the activities of fundamentalists and technicians is specified and estimated. The results show that both types of traders play a role in exchange rate determination and that fundamentalists play a bigger role. The results of model selection tests reveal that models based on the activities of fundamentalists only or technicians only are misspecified.
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Volume (Year): 53 (2000)
Issue (Month): 1 ()
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