Selaive, Jorge; Tuesta, Vicente - EconWPA - 2004
common long-term trend in consumption, asset wealth, and labor income (herby, consumption-wealth ratio)is a strong predictor … of the excess returns. In this paper, we study the role of the consumption-wealth ratio in predicting the change in the … nominal exchange rate of a large set of countries. We find evidence that fluctuations in the consumption-wealth ratio help to …