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UNIVERSITAS INDONESIA
LONG-HORIZON EXCHANGE RATE
EXPECTATIONS
TESIS
FAKULTAS EKONOMI DAN BISNIS
2025

Tesis

Long-Horizon Exchange Rate Expectations

Varela, Liliana - ; Martin, Ian W. R. - ; Kremens, Lukas - ;

We study exchange rate expectations in surveys of financial professionals and find that they successfully forecast currency appreciation at the two-year horizon, both in and out of sample. Exchange rate expectations are also interpretable, in the sense that three macro-finance variables—the risk-neutral covariance between the exchange rate and equity market, the real exchange rate, and the current account relative to GDP—explain most of their variation. There is no “secret sauce,” however, in expectations: After controlling for the three macro-finance variables, the residual information in survey expectations does not forecast currency appreciation in our sample.


Ketersediaan

Call NumberLocationAvailable
TJF8006PSB lt.2 - Karya Akhir (Majalah)1
PenerbitUnited States: American Finance Association 2025
EdisiVol. 80 Issue 6, Dec 2025
SubjekExchange rate expectations
Financial professionals
The risk-neutral covariance
Ttwo-year horizon
ISBN/ISSN1540-6261
KlasifikasiNONE
Deskripsi Fisik30 p.
Info Detail SpesifikThe Journal of Finance
Other Version/RelatedTidak tersedia versi lain
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  • Long-Horizon Exchange Rate Expectations

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