EconStor >
ifo Institut – Leibniz-Institut für Wirtschaftsforschung an der Universität München >
CESifo Working Papers, CESifo Group Munich >

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10419/26007
  

Full metadata record

DC FieldValueLanguage
dc.contributor.authorde Grauwe, Paulen_US
dc.contributor.authorKaltwasser, Pablo Roviraen_US
dc.date.accessioned2007-07-24en_US
dc.date.accessioned2009-07-28T08:14:48Z-
dc.date.available2009-07-28T08:14:48Z-
dc.date.issued2007en_US
dc.identifier.urihttp://hdl.handle.net/10419/26007-
dc.description.abstractIn this paper we model how the existence of different beliefs about the underlying fundamental value of a currency affects the dynamics of the exchange rate. We find that a divergence of beliefs creates the potential for waves of optimism and pessimism that alternate in an unpredictable way. These waves are disconnected from the underlying (objective) fundamental value. We also find that in such a world there is sensitivity to initial conditions, i.e. small changes in beliefs can fundamentally alter the time path of the exchange rate.en_US
dc.language.isoengen_US
dc.publisherCESifo Münchenen_US
dc.relation.ispartofseriesCESifo working paper 1962en_US
dc.subject.jelC63en_US
dc.subject.jelG12en_US
dc.subject.jelG15en_US
dc.subject.ddc330en_US
dc.subject.stwWechselkurstheorieen_US
dc.subject.stwAnlageverhaltenen_US
dc.subject.stwPortfolio-Managementen_US
dc.subject.stwErwartungstheorieen_US
dc.subject.stwWertpapieranalyseen_US
dc.subject.stwSimulationen_US
dc.subject.stwTheorieen_US
dc.titleModeling optimism and pessimism in the foreign exchange marketen_US
dc.typeWorking Paperen_US
dc.identifier.ppn538094346en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
Appears in Collections:CESifo Working Papers, CESifo Group Munich

Files in This Item:
File Description SizeFormat
538094346.PDF430.65 kBAdobe PDF
No. of Downloads: Counter Stats
Show simple item record
Download bibliographical data as: BibTeX

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.