behavior of macroeconomic fundamentals. Economic and probabilistic arguments are offered for such a relationship. Empirical … support is given by testing against normality and through investigating the tail shapes of the fundamentals' distributions …

mechanism in foreign exchange markets. We analyze the role of expectations regarding macroeconomic fundamentals for expected … expectations regarding GDP growth, inflation, interest rates, and current accounts. Our empirical findings show that fundamentals … attention to expected fundamentals. Finally, we also observe that incorporating expected fundamentals tends to reduce forecast …

mechanism in foreign exchange markets. Therefore, we analyze the role of expectations regarding macroeconomic fundamentals for … fundamentals, which is not fully consistent with traditional fundamentals models. We especially highlight the relevance of the PPP …

This paper presents new stylized facts about exchange rates and their relationship with macroeconomic fundamentals. We …