This article deals with three propositions pertaining to U.S.-Chinese dispute over the trade imbalance between them: that the Chinese currency is undervalued, that this undervaluation is the cause of the trade imbalance, and that Chinese policies are immoral and illegal according to...

This paper examines the Post Keynesian proposition that the forward rate is determined by covered interest parity and that it is not a predictor of the future spot rate, as suggested by the unbiased efficiency hypothesis. One implication of the failure of unbiased efficiency is that it leads to...

An attempt is made to evaluate the neoclassical and Post Keynesian approaches to exchange rate determination, represented respectively by the flexible price monetary model and a version of the flow model that takes into account market psychology, resulting in a bandwagon effect. For this...

This paper presents structural time series evidence supporting the Post Keynesian hypothesis on the role of expectations in the foreign exchange market. For all of the four exchange rates examined, the hypothesis that exchange rates are driven primarily by expectations is strongly supported. The...