The Exchange Rate Politics Puzzle

Stephen Blomberg and Gregory Hess

Working Papers from Wellesley College - Department of Economics

Abstract: Standard exchange rate models perform poorly in out-of-sample forecasting when compared to the random walk model. We posit that part of the poor performance of these models may be due to their omission of political factors.

Keywords: EXCHANGE RATE; PRICING; POLITICAL ECONOMY (search for similar items in EconPapers)
JEL-codes: F31 G12 H8 (search for similar items in EconPapers)
Pages: 28 pages
Date: 1995
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:fth:wecoec:95-14

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