Authors
Kenneth A Froot, Richard H Thaler
Publication date
1990/8/1
Journal
Journal of economic perspectives
Volume
4
Issue
3
Pages
179-192
Publisher
American Economic Association
Description
In what follows, we discuss the efficiency of foreign exchange markets. To manage what would otherwise be an enormous task, the question of efficiency is viewed below from the perspective of a single type of test: the test for what is called the forward discount bias. This test is easy to understand, and since it strongly rejects the null hypothesis, statistical power is not an issue. Naturally, in discussing this particular test we mention a variety of other empirical work designed to shed light on alternative explanations of the results.
Total citations
Scholar articles
KA Froot, RH Thaler - Journal of economic perspectives, 1990
KA Froot, RH Thaler - … LIBRARY OF CRITICAL WRITINGS IN ECONOMICS, 2002