Alternative expectations models and exch
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Jay H. Levin
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Article
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1998
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John Wiley and Sons
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English
โ 184 KB
This paper reconsiders the issue of exchange rate dynamics in light of recent empirical evidence on the possible failure of rational exchange rate expectations. The Dornbusch model is respecified using three popular models of exchange rate expectations tested by Frankel and Froot. A key result of th