This paper analyzes the role of uncertainty on both exchange rate expectations and forecast errors of professionals for … Bayesian VAR approach, we observe that effects on forecast errors of professionals turn out to be more significant compared to …

results clearly demonstrate that analyst forecast errors, and forecast dispersion, increase with EPU. US monetary policy … uncertainty and Japanese trade policy uncertainty are particularly important in generating forecast dispersion. The empirical … findings are consistent across forecast horizons ranging from 1-month to 1-year. This has important implications for market …