Enhancing the forecasting power of exchange rate models by introducing nonlinearity: Does it work?
It is demonstrated that the forecasting power of the flexible price monetary model of exchange rates can be enhanced by introducing dynamics through the use of a linear error correction specification. However, the introduction of nonlinearity, by using a polynomial in the error correction term, does...
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| Format: | Journal Article |
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Elsevier BV * North-Holland
2015
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| Subjects: | |
| Online Access: | http://hdl.handle.net/20.500.11937/28335 |