Template-type: ReDIF-Paper 1.0
Author-Name: Simón Javier Sosvilla Rivero
Author-Workplace-Name: Departamento de Fundamentos del Análisis Económico II (Economía Cuantitativa). Universidad 
	Complutense de Madrid.
Author-Workplace-Homepage:
 https://www.ucm.es//departamento-de-analisis-economico-y-economia-cuantitativa
Title: Asset-market models of exchange-rate determination: Basic models, empirical evidence and extensions
Abstract: In this paper we have reviewed the theoretical models associated with those approaches, focusing on the 
	implied reduced-form equations. We have also examined the empirical evidence on these models for the recent 
	floating period, finding that econometric evidence on these models is mixed and inconclusive: they seem to 
	work, to sorne extent, for the first period of the recent floating experience (i. e., 1975-1978), but they do 
	not work so well in the 1980s. In addition, studies by Meese and Rogoff (¡983a, b) have Indicated that the 
	explanatory power of econometric exchange rate models has been extremely poor. They conclude that models of 
	exchange rates could not perform better than a naive random-walk model in the post sample forecasting tests, 
	even when the explanatory variables used were the reallzed values during the post sample period.

Keywords: Asset-market models; Exchange-rate.

Length: 107 pages 
Creation-Date: 1991 
Number: 91-24
X-File-Ref: http://america.sim.ucm.es/repec/ucm/ref/doctra91-24.txt
File-URL:
 https://eprints.ucm.es/id/eprint/26249/1/9124.pdf
File-Format: Application/pdf
Handle: RePEc:ucm:doctra:91-24