Browse Research

Contains

Authors

Content Types

JEL Codes

Topics

Published After

Published Before

1116 result(s)

Optimum Currency Areas and Shock Asymmetry: A Comparison of Europe and the United States

Staff Working Paper 1994-1 Nick Chamie, Alain DeSerres, René Lalonde
Since the early 1980s, models based on economic fundamentals have been poor at explaining the movements in the exchange rate (Messe 1990). In response to this problem, Frankel and Froot (1988) developed a model that uses two approaches to forecast the exchange rate: the fundamentalist approach, which bases the forecast on economic fundamentals, and the chartist approach, which bases the forecast on the past behaviour of the exchange rate.
Content Type(s): Staff research, Staff working papers Topic(s): Exchange rates, Financial markets JEL Code(s): C, C4, C40, G, G1, G12