Expectation errors in the foreign exchange market

B-Tier
Journal: Journal of International Money and Finance
Year: 2019
Volume: 95
Issue: C
Pages: 44-51

Score contribution per author:

0.670 = (α=2.01 / 3 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

A unified theoretical model is developed showing that forecasting errors can be explained by both informational rigidities and portfolio shifts. This is applied to the BRL/USD exchange rate forecasting errors using a unique data set of daily consensus forecasts along with order flow derived from the FX futures market. The results strongly support the theory.

Technical Details

RePEc Handle
repec:eee:jimfin:v:95:y:2019:i:c:p:44-51
Journal Field
International
Author Count
3
Added to Database
2026-01-25