Dewachter, H.; Houssa, R.; Lyrio, M.; Kaltwasser, P. R. - In: Review of Business and Economic Literature LVI (2011) 4, pp. 454-472
This paper investigates the exchange rate dynamics implied by a heterogeneous agent model proposed in De Grauwe and Grimaldi (2006). The two groups of agents, chartists and fundamentalists, use simple forecasting rules and the ex post relative profitability to decide whether to switch to the...
