Praise for Handbook of Exchange Rates "This book is remarkable. I expect it to become the anchor reference for people working in the foreign exchange field." -Richard K. Lyons, Dean and Professor of Finance, Haas School of Business, University of California Berkeley "It is quite easily the most...

We provide empirical evidence that deviations from uncovered interest rate parity (UIP) display significant nonlinearities, consistent with theories based on transaction costs or limits to speculation. This evidence suggests that the forward bias documented in the literature may be less...