A reappraisal of the Meese–Rogoff puzzle
Several explanations have been put forward for the Meese–Rogoff puzzle that exchange rate models cannot outperform the random walk in out-of-sample forecasting. We suggest that a simple explanation for the puzzle is the use of the root mean square error (RMSE) to measure forecasting accuracy, presen...
| Main Authors: | , |
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| Format: | Journal Article |
| Published: |
Routledge
2014
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| Subjects: | |
| Online Access: | http://hdl.handle.net/20.500.11937/5932 |