INEFFICIENCY OF FOREIGN-EXCHANGE MARKETS AND EXPECTATIONS - SURVEY EVIDENCE

Authors
MADSEN ES
Citation
Es. Madsen, INEFFICIENCY OF FOREIGN-EXCHANGE MARKETS AND EXPECTATIONS - SURVEY EVIDENCE, Applied economics, 28(4), 1996, pp. 397-403
Citations number
18
Categorie Soggetti
Economics
Journal title
Applied economics → ACNP
ISSN journal
00036846
Volume
28
Issue
4
Year of publication
1996
Pages
397 - 403
Database
ISI
SICI code
0003-6846(1996)28:4<397:IOFMAE>2.0.ZU;2-C
Abstract
In recent years, the finding of a bias has cast doubts on the efficien cy of the forward-exchange market. A large survey of exchange-rate exp ectations in the Danish market shows that this inefficiency is mainly due to risk aversion in the market. The results contradict the finding s of surveys of US and UK forward exchange markets, where contribution from biased expectations has been large.