A chaotic model of the exchange rate: The role of fundamentalists and chartists

A monetary model of the exchange rate is constructed in which â€œfundamentalistsâ€ and â€œchartistsâ€ interact. It is shown that the non-linearity of this speculative dynamics leads to chaotic motion of the exchange rate. The model is also capable of generating some of the stylized facts of exchange rate dynamics. Copyright Kluwer Academic Publishers 1993

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Year of publication:	1993
Authors:	Grauwe, Paul ; Dewachter, Hans
Published in:	Open Economies Review. - Springer. - Vol. 4.1993, 4, p. 351-379
Publisher:	Springer
Subject:	exchange rate \| chaos \| fundamentalism \| chartism

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Extent:	text/html
Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005809974