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We show analytically that in a rational expectations present value model, an asset price manifests near random walk behavior if fundamentals are I(1) and the factor for discounting future fundamentals is near one. We argue that this result helps explain the well known puzzle that fundamental...
Persistent link: https://www.econbiz.de/10012785468
We show analytically that in a rational expectations present value model, an asset price manifests near random walk behavior if fundamentals are I(1) and the factor for discounting future fundamentals is near one. We argue that this result helps explain the well known puzzle that fundamental...
Persistent link: https://www.econbiz.de/10012467971
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GDP on exchange rate, for 76 quarterly observations period of 2000-2019, in Ghana and to examine their effectiveness in … and Ghana Statistical Service. It was found that, real GDP granger causes exchange rate in Ghana. However, inflation … increase the GDP produced in the country, in order to depreciate the foreign currency. …
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