This chapter surveys recent theoretical and empirical contributions on foreign exchange rate
determination. The chapter first examines monetary models under uncovered interest parity …

The value of a country's currency is often considered as the most important price in the
economy. Exchange‐rate changes can significantly affect the profitability of exporters, the …

This study provides a new angle on the relationship between political decisions and
exchange rates. We link a conventional exchange rate modeling approach to the literature …

The forecasting literature has identified two important issues:(i) several predictors have
substantial and statistically significant predictive content, although only sporadically, and it is …

This paper investigates the impact of relative economic policy uncertainty between China
and the United States (the Sino-US EPU ratio) on the Chinese exchange rate volatility by …

We revisit the association between fundamentals and exchange rates in emerging markets
relying on the role of the Economic Policy Uncertainty (EPU) in explaining/forecasting …

The Great Financial Crisis (GFC) of 2007–09 confirmed the vital importance of advancing
our understanding of macrofinancial linkages. The GFC was a bitter reminder of how sharp …

Previous assessments of nominal exchange rate determination, following Meese and Rogoff
(1983) have focused upon a narrow set of models. Cheung et al.(2005) augmented the …

This study analyzes the impact of the COVID-19 pandemic on exchange rates based on a
comprehensive set of survey forecasts for more than 50 currency pairs. At the first stage, we …

The literature documents a heterogeneous asset price response to macroeconomic news
announcements. We relate this heterogeneity to a novel measure of the intrinsic value of an …