vector autoregression, and assess whether best-practice structural identifications detect textbook "overshooting" after a … monetary policy hike-i.e., an instant real appreciation that monotonically reverts. Our results include "delayed overshooting …," "exchange rate puzzles," "forward discount puzzles," and model-consistent overshooting. Identifications that regularly indicate …

of exchange rate dynamics. We examine the overshooting hypothesis in models which emphasize differential speeds of … exchange rate overshooting is not an intrinsic characteristic of the foreign exchange market and that it depends on a set of … specific assumptions. We also show that the overshooting is not a characteristic of the assumption of perfect foresight nor …