Order Flow and Exchange Rate Dynamics in Continuous Time: New Evidence from Martingale Regression
The so-called “foreign exchange rate determination puzzle” has been a hard topic in international finance for several decades. The puzzle illustrates the weak explanatory power of macroeconomic-based models of the nominal exchange rate fluctuations. We investigate the foreign exchange rate determin...
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| Format: | Article |
| Language: | English |
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EconJournals
2017-04-01
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| Series: | International Journal of Economics and Financial Issues |
| Online Access: | https://www.econjournals.com/index.php/ijefi/article/view/4190 |