Incomplete Information Processing: A Solution to the Forward Discount Puzzle
نویسندگان
چکیده
منابع مشابه
Fixes: Of The Forward Discount Puzzle
Regressions of ex post changes in floating exchange rates on appropriate interest differentials typically imply that the high-interest rate currency tends to appreciate, the "forward discount puzzle". Using data from the European Monetary System, we find that a large part of the forward discount puzzle vanishes for regimes of fixed exchange rates. That is, deviations from uncovered interest par...
متن کاملCooperation under Incomplete Information on the Discount Factors
In the repeated Prisoner’s Dilemma, when every player has a different discount factor, the grim-trigger strategy is an equilibrium if and only if the discount factor of each player is higher than some threshold. What happens if the players have incomplete information regarding the discount factors? In this work we look at repeated games in which each player has incomplete information regarding ...
متن کاملThe Forward Guidance Puzzle
With short-term interest rates at the zero lower bound, forward guidance has become a key tool for central bankers, and yet we know little about its effectiveness. This paper first empirically documents the impact of forward guidance announcements on a broad cross section of financial markets data and professional forecasts. We find that FOMC announcements containing forward guidance had hetero...
متن کاملUsing agent based method to Explain Forward Discount Bias (FDB) puzzle in FX market —A MATLAB Application
This paper tries to implement agent-based model to simulate the price formation mechanism in the foreign exchange spot market and forward market and cast new insight into the explanation of forward discount bias puzzle. Genetic Algorithms (GA) is used by trading agent to optimize prediction rule, risk preferences is assumed to be same. Excess demand oriented (order flow induced) price dynamics ...
متن کاملInformation processing: A solution to the binding problem?
It is now widely accepted that the brain processes sensory information in a distributed, hierarchical fashion, even if the actual hierarchies are ambiguous at present [1,2]. Within hierarchies, such as that of the visual system [3] (Fig. 1), different aspects of the incoming sensory information — such as colour, texture, shape, motion and so on — are processed separately and in parallel [1]. At...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
ژورنال
عنوان ژورنال: SSRN Electronic Journal
سال: 2006
ISSN: 1556-5068
DOI: 10.2139/ssrn.1004808