Abstract
)L,ZIP ENCE the late l970s, theoretical explanations of exchange rate deternunation have emphasized the asset approach rather tItan the expenditure approach.’ Most of the empirical research applying the asset models of exchange rate detern malion also subsume the efficient market hypothesis. In this article, we test three efficient niarke I hypotheses bearing on forward exchange rates: Fl rst, are forward rates unbiased forecasts of future spot exchange rates? Second, does ‘‘news’’ in particular iinanti ci pated changes in nominal or real interest differentials — explain for—
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
