Nason, James M.; Rogers, John H. - Federal Reserve Board (Board of Governors of the … - 2008
Exchange rates have raised the ire of economists for more than 20 years. The problem is that few, if any, exchange rate … failures can be explained by the standard-present value model (PVM) because it predicts random walk exchange rate dynamics if … factor to one implying the Canadian dollar-U.S. dollar exchange rate is a random walk dominated by permanent cross …