Current account model with rational expectations and Bayesian learning

The article presents a long-term macro-model of the US trade balance that allows for agents with rational expectations to learn about the key parameters affecting the currency forecast. This allows for a dynamic that is a plausible middle-ground between the standard alternatives of either perfect information or investor myopia.

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Year of publication:	2009
Authors:	McGee, Christopher Dylan
Published in:	International Journal of Economics and Business Research. - Inderscience Enterprises Ltd, ISSN 1756-9850. - Vol. 1.2009, 3, p. 333-346
Publisher:	Inderscience Enterprises Ltd
Subject:	Bayesian learning \| current account \| macromodelling \| US trade balance \| USA \| United States \| currency forecast

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

Persistent link: https://www.econbiz.de/10008755200