Article ID Journal Published Year Pages File Type
963188 Journal of International Financial Markets, Institutions and Money 2012 22 Pages PDF
Abstract
► Inferential expectations (IE) model beliefs as a hypothesis test. ► In a forex experiment, IE agents are belief conservative. ► Belief conservatism helps explain the uncovered interest parity failure. ► Belief conservatism is magnified (rather than reduced) in a market setting.
Keywords
Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
Preview
Monetary policy and inferential expectations of exchange rates
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