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Exchange Rate Expectations Survey of Survey Studies

This paper presents a brief survey of the empirical literature on survey-based exchange rate expectations. The literature in general supports the presence of a non-zero risk premium and rejects the hypothesis of rational expectations. The crucial result is that, while short-run expectations tend to...

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Bibliographic Details
Corporate Author: International Monetary Fund
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 1990
Series:IMF Working Papers
Subjects:
Government And The Monetary System
Payment Systems
Investment
Finance
Return On Investment
Monetary Economics
Currency; Foreign Exchange
Regimes
Exchange Rate Adjustments
Intangible Capital
National Accounts
Money
International Financial Markets
Currency Markets
Foreign Exchange
Depreciation
Standards
Financial Markets
Saving And Investment
Currencies
Investments: General
Monetary Systems
Macroeconomics
Capacity
Foreign Exchange Market
Exchange Rates
Capital
Money And Monetary Policy
Finance: General
United States
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
Description
Summary:This paper presents a brief survey of the empirical literature on survey-based exchange rate expectations. The literature in general supports the presence of a non-zero risk premium and rejects the hypothesis of rational expectations. The crucial result is that, while short-run expectations tend to move away from some long-run “normal” values, long-run expectations tend to regress toward them. If this nature of short-run expectations increases the volatility of exchange rate movements, there may be a basis for some official measure to minimize short-run exchange rate movements
Physical Description:36 pages
ISBN:9781451970203

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