leads to a depreciation of the country's spot nominal exchange rate in both conventional and unconventional periods; (ii …

evidence, I argue that the forward premium puzzle remains a puzzle …

relation in terms of cross-country differences between forward interest rates rather than spot interest rates with dramatic … consistent with economic theory. Forward interest rates also forecast future spot interest rates and future inflation. Thus, we …The forward premium anomaly is one of the most robust puzzles in financial economics. We recast the underlying parity …

equation does not hold empirically since the forward discount, or interest rate differential, is negatively related to the … subsequent change in the exchange rate. This forward discount puzzle is one of the most extensively researched areas in …

trading volume of spot exchange rates also widens the spread. The omission of the trading volume, however, does not bias the …

positively correlated with increases in the expected profitability of purchasing these currencies in the forward market, and risk …

subsequent spot rate movements. Using weekly dollar-mark and dollar sterling data, we find that spot and forward exchange rates …We present theory and evidence that challenges the view that forward premia contain little information regarding … relationships predicted by a simple theoretical framework and that a basis for this cointegrating space is the vector of forward …

This paper examines the efficiency of the forward yen/dollar market using micro survey data. We first argue that the … conventional tests of efficiency (unbiasedness) of the forward rate or of the survey forecasts do not correspond directly to the … based on a natural trading rule. We find that although the survey data are not the best predictor of future spot rate in …