The quality of information in financial asset markets is often hard to estimate. This paper analyzes information transmission in asset markets when agents treat information of unknown quality as ambiguous. We consider a market with risk-averse informed investors, risk-neutral competitive...

The paper aims to find the long run and the short run relationships between trade balance, income, money supply, and real effective exchange rate for the period 1980 to 2011 in the case of Pakistan. The analysis is based on bounds testing approach to co-integration and error correction models,...