We propose a stylized exchange rate model based on diversity and weight ofopinion. Our model departs from standard assumptions in that we allow forheterogeneous agents. We show that such a model can explain both the observedvolatility and the persistence of real and nominal exchange rate...

Perspectives on Econometrics and Applied Economics A Tribute to Sir Clive Granger Edited by Mark P. Taylor Routledge Taylor & Francis Group LONDON A ND NEW YORK Contents 1. Special issue in honour of Clive Granger Mark P. Taylor ...