This paper provides a new perspective on the exchange rate disconnect puzzle by referring to the expectations building … mechanism in foreign exchange markets. We analyze the role of expectations regarding macroeconomic fundamentals for expected … expectations regarding GDP growth, inflation, interest rates, and current accounts. Our empirical findings show that fundamentals …

This paper provides a new perspective on the exchange rate disconnect puzzle by referring to the expectations building … mechanism in foreign exchange markets. Therefore, we analyze the role of expectations regarding macroeconomic fundamentals for … expected exchange rate changes. In doing so, we assess data for 31 economies from 2002 to 2017 and consider expectations …

question analysed in this apper. In contrast to other studies we use expectations instead of realised data. Therefore we … analyse the implicit structural models forecasters have in mind when forming their exchange rate expectations. Using expected … short- and long-term interest rates and business expectations as explanatory variables we estimate latent structural models …

This paper analyzes the role of uncertainty on both exchange rate expectations and forecast errors of professionals for … the adjustment of exchange rate expectations. Our findings are robust to different forecasting horizons and point to an …

forecasters believe in uncovered interest rate parity (UIP). Specifically, we test whether the interest rate expectations for … individual forecasters are in line with their exchange rate expectations using the UIP condition. This new approach allows us to …