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文章基本信息

  • 标题:A Note on the Size of Forward Exchange Rate Bias
  • 本地全文:下载
  • 作者:Guan Jun Wang
  • 期刊名称:International Journal of Economics and Finance
  • 印刷版ISSN:1916-971X
  • 电子版ISSN:1916-9728
  • 出版年度:2015
  • 卷号:7
  • 期号:9
  • 页码:237
  • DOI:10.5539/ijef.v7n9p237
  • 出版社:Canadian Center of Science and Education
  • 摘要:

    In this short note, we argue that the rejection of forward exchange rate unbiasedness hypothesis (FRUH) does not necessary mean that forward exchange rates have little effect as forecasts of future spot exchange rates as claimed in the literature. Due to symmetric feature of foreign exchange markets, we conjecture the size of forward exchange rate bias should be fairly small. We combine theoretical analysis with the observation of empirical results to validate this conjecture.

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