No theory of structural exchange rate determination has yet been found that performs well in prediction experiments. Only very seldom has the simple random walk model been significantly outperformed. Referring to three, sometimes highly nonlinear, monetary and nonmonetary structural exchange...

We present a novel regression method that combines projection pursuit regression with feed forward neural networks. The algorithm is presented and compared to standard neural network learning. Connectionist projection pursuit regression (CPPR) is applied to modelling the U.S. average...

In the economics literature on exchange rate determination, no theory has yet been found that performs well in out-of-sample prediction experiments. Until today, the simple random walk model has never been significantly outperformed. We have identified a set of fundamental long-run exchange rate...