Wu, Jyh-Lin; Hu, Yu-Hau - In: Journal of International Money and Finance 28 (2009) 6, pp. 1045-1063
The Meese-Rogoff puzzle, one of the well-known puzzles in international economics, concerns the weak relationship between nominal exchange rates and market fundamentals. The purpose of this paper is to show that market fundamentals do in fact matter in forecasting nominal exchange rates. In...