Modeling Exchange Rates with Incomplete Information

Philippe Bacchetta and Eric van Wincoop

Cahiers de Recherches Economiques du Département d'économie from Université de Lausanne, Faculté des HEC, Département d’économie

Abstract: Recent research has shown that relaxing the assumptions of complete information and common knowledge in exchange rate models can shed light on a wide range of important exchange rate puzzles. In this chapter, we review a number of models we have developed in previous work that relax the strong assumptions on information. We also review some related literature.

Keywords: information heterogeneity; learning; infrequent decisions (search for similar items in EconPapers)
JEL-codes: F31 F37 F47 (search for similar items in EconPapers)
Pages: 32 pages
Date: 2011-05
New Economics Papers: this item is included in nep-cba and nep-cta
References: View references in EconPapers View complete reference list from CitEc
Citations:

Published in James J., Marsh I.W. and Sarno L. (eds.), Handbook of Exchange Rates, Wiley, 2012

Downloads: (external link)
http://www.hec.unil.ch/deep/textes/11.03.pdf (application/pdf)

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:lau:crdeep:11.03

Access Statistics for this paper

More papers in Cahiers de Recherches Economiques du Département d'économie from Université de Lausanne, Faculté des HEC, Département d’économie Université de Lausanne, Faculté des HEC, Département d’économie, Internef, CH-1015 Lausanne. Contact information at EDIRC.
Bibliographic data for series maintained by Christina Seld ().