Consistency and Exchange Rate Expectations

Swarna D. Dutt
Additional contact information
Swarna D. Dutt: West Georgia College, Carrollton, GA 30118, USA

Indian Economic Review, 1996, vol. 31, issue 2, 205-222

Abstract: This study examines consistency in the exchange rate expectation formation process. A standard expectation formation model namely exponential forecasting is used to theoretically draw the consistency conditions and then we empirically test the same. Since the literature has expressed reservations about structural expectation processes, a model independent analysis (multivariate cointegration test) is also conducted. Consistency in the expectation formation process is not rejected (rejected) at the short (long) horizon in the structural framework, while it is upheld across the board by the cointegration procedure. Thus while one methodology supports consistency the others support bandwagon expectations.

JEL-codes: F31 (search for similar items in EconPapers)
Date: 1996
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:dse:indecr:v:31:y:1996:i:2:p:205-222

Ordering information: This journal article can be ordered from
http://www.ierdse.org/

Access Statistics for this article

Indian Economic Review is currently edited by Pami Dua (Editor) & Ram Singh (Associate Editor) and Sunil Kanwar

More articles in Indian Economic Review from Department of Economics, Delhi School of Economics University of Delhi, Delhi 110 007. Contact information at EDIRC.
Bibliographic data for series maintained by Pami Dua ().