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In this paper we investigate the effects of central bank interventions (CBI) in a noise trading model with chartists and fundamentalists. We first estimate a model in which chartists extrapolate past returns and fundamentalists forecast a mean reverting dynamics of the exchange rate towards a...
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This paper investigates the relationship between the euro-dollar exchange rate and its underlying fundamentals. First …
Persistent link: https://www.econbiz.de/10010261347