Great expectations? evidence from Colombia’s exchange rate survey
Jueves, 21 julio 2016
In this paper written by Juan Jose Echavarria and Mauricio Villamizar-Villegas, we use the largest exchange rate survey in Colombia to test for the rational expectations hypothesis, the presence of a time-varying risk premium and the accuracy of exchange rate forecasts. Our findings indicate that episodes of exchange rate appreciation preceded expectations of further appreciation
- Published in Revistas CIDE