The Unpredictable Dollar-Euro Exchange Rate
The rate at which dollars are exchanged for euros impacts our daily lives. So, it’s no surprise that this and other currency fluctuations are studied and debated. What could be called the “classical approach” attributes changes in the exchange rate to changes in GDP and other such variables. Yet, Meese and Rogoff overturned this theory in 1983 by showing that exchange rate changes are unpredictable. … [ Read more ]
Content: Article | Authors: Miguel Ángel Ariño, Miguel Ángel Canela | Source: IESE Insight | Subjects: Finance, International