variables. Therefore, the model has the potential to deliver changes in exchange rates, resulting from rational speculation … like asset prices. However, it does not generate a sufficient degree of rational speculation to explain either observed …

speculative activity and the types of economic shocks that dominate. At low levels of speculative activity, speculation will be …

exchange rate's generating process, the connection between rational speculation and exchange rate volatility highlighted here … can be considered microstructural. Low levels of rational speculation are stabilizing and high levels are destabilizing …

speculative activity and the types of economic shocks that dominate. At low levels of speculative activity, speculation will be …

variables. Therefore, the model has the potential to deliver changes in exchange rates, resulting from rational speculation … like asset prices. However, it does not generate a sufficient degree of rational speculation to explain either observed …