Modeling Exchange Rates with Incomplete Information

Recent research has shown that relaxing the assumptions of complete information and common knowledge in exchange rate models can shed light on a wide range of important exchange rate puzzles. In this chapter, we review a number of models we have developed in previous work that relax the strong assumptions on information. We also review some related literature.

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Year of publication:	2011-05
Authors:	Bacchetta, Philippe ; Wincoop, Eric van
Institutions:	Départment d'économétrie et d'économie politique (DEEP), Faculté des Hautes Études Commerciales (HEC)
Subject:	information heterogeneity \| learning \| infrequent decisions

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Extent:	application/pdf
Series:	Cahiers de Recherches Economiques du Département d'Econométrie et d'Economie politique (DEEP).
Type of publication:	Book / Working Paper
Language:	English
Notes:	Published in James J., Marsh I.W. and Sarno L. (eds.), Handbook of Exchange Rates, Wiley, 2012 32 pages
Classification:	F31 - Foreign Exchange ; F37 - International Finance Forecasting and Simulation ; F47 - Forecasting and Simulation
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10009024792