We re-examine the Fama (1984) puzzle – the finding that ex post depreciation and interest differentials are negatively correlated, contrary to what theory suggests – for eight advanced country exchange rates against the US dollar, over the period up to June 2019. The rejection of the joint...

We re-examine the Fama (1984) puzzle - the finding that ex post depreciation and interest differentials are negatively correlated, contrary to what theory suggests - for eight advanced country exchange rates against the US dollar, over the period up to February 2016. The rejection of the joint...