Interpreting the Forward Premium Anomaly.

One of the central issues in international finance concerns the forward premium anomaly: changes in spot exchange rates are inversely related to the premium of forward rates over spot rates. The authors construct a numerical example of a theoretical economy with this property and discuss its potential as an explanation of the anomaly.

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Year of publication:	1995
Authors:	Backus, David K. ; Foresi, Silverio ; Telmer, Chris I.
Published in:	Canadian Journal of Economics. - Canadian Economics Association - CEA. - Vol. 28.1995, s1, p. 108-19
Publisher:	Canadian Economics Association - CEA

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Type of publication:	Article
Notes:	Published
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005608888