Chakraborty, Avik; Haynes, Stephen E. - In: Economics Bulletin 6 (2008) 42, pp. 1-17
This paper compares the "level" regression of the future spot rate on the current forward rate, which yields a slope coefficient close to unity, to the forward premium puzzle, i.e., a regression of the change in the spot exchange rate on the forward premium, which paradoxically yields a slope...