Mark P. Taylor

TL;DR: In the last few decades exchange rate economics has seen a number of developments, with substantial contributions to both the theory and empirics of exchange rate determination as mentioned in this paper. But, while our understanding of exchange rates has significantly improved, a few challenges and open questions remain in the exchange rate debate, enhanced by events including the launch of the Euro and the large number of recent currency crises.

TL;DR: In this article, the results of a questionnaire survey, conducted on behalf of the Bank of England, among chief foreign exchange dealers based in London in November 1988, revealed that at least 90 per cent of respondents place some weight on this form of non-fundamental analysis when forming views at one or more time horizons.

TL;DR: The authors fit nonlinearly mean-reverting models to real dollar exchange rates over the post-Bretton Woods period, consistent with a theoretical literature on transactions costs in international arbitrage.

TL;DR: The authors found strong evidence of mean-reverting real exchange rate behavior, using simple, stationary, autoregressive models estimated on pre-float data, and easily outperformed nonstationary real-exchange rate models in dynamic forecasting exercises over the recent float.

TL;DR: In this paper, the authors proposed a multivariate test whose null hypothesis is violated only when all of the processes in question are stationary, and applied the tests to real exchange rates among the G5 over the recent float.