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 …

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 …

heterogeneity, we test in particular how the exchange rate elasticity may be a..ected by firm-level productivity, and how the …

684 estimates for 108 countries. Because there are many potential causes of heterogeneity, I use Bayesian model averaging …

first examines monetary models under uncovered interest parity and rational expectations, and then considers deviations from … UIP/rational expectations: foreign exchange risk premium, private information, near-rational expectations, and peso …

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 …