Long swings and chaos in the exchange rate in a DSGE model with a Taylor rule

A DSGE model with a Taylor rule is augmented with an evolutionary switching between technical and fundamental analyses in currency trade, where the fractions of these trading tools are determined within the model. Then, a shock hits the economy. As a result, chaotic dynamics and long swings may occur in the exchange rate, which are appealing features of the model given existing empirical evidence on chaos and long swings in exchange rate fluctuations.

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Year of publication:	2007
Authors:	Bask, Mikael
Publisher:	Helsinki : Bank of Finland
Subject:	chaotic dynamics \| foreign exchange \| fundamental analysis \| monetary policy \| technical analysis

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Series:	Bank of Finland Research Discussion Papers ; 19/2007
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Working Paper
Language:	English
ISBN:	978-952-462-387-2
Other identifiers:	549981608 [GVK] hdl:10419/212077 [Handle] RePEc:zbw:bofrdp:rdp2007_019 [RePEc]
Classification:	C65 - Miscellaneous Mathematical Tools ; E32 - Business Fluctuations; Cycles ; E44 - Financial Markets and the Macroeconomy ; E52 - Monetary Policy (Targets, Instruments, and Effects) ; F31 - Foreign Exchange
Source:	EconStor

Persistent link: https://www.econbiz.de/10012148008