Sawischlewski, Katja; Menkhoff, Lukas; Beckmann, Daniela - Verein für Socialpolitik, Ausschuss für … - 2005
Early warning systems (EWSs) are subject to restrictions that apply to exchange rates in general: fundamentals matter but their influence is small and unstable. Keeping this in mind, five lessons emerge : First, EWSs have robust forecasting power and thus help policy-makers to prevent crises....