Currency forecasters are heterogeneous: confirmation and consequences

MacDonald, R. and Marsh, I. W. (1996) Currency forecasters are heterogeneous: confirmation and consequences. Journal of International Money and Finance, 15(5), pp. 665-685. (doi:10.1016/0261-5606(96)00030-7)

Full text not currently available from Enlighten.


Using a disaggregated international survey database we demonstrate that foreign exchange forecasters hold heterogeneous expectations. We find that a major cause of these differences of opinion is the idiosyncratic interpretation of widely available information, and that this heterogeneity translates into economically meaningful differences in forecast accuracy. Finally, we show that such disagreements are key variables in determining market trading volume.

Item Type:Articles
Glasgow Author(s) Enlighten ID:MacDonald, Professor Ronald
Authors: MacDonald, R., and Marsh, I. W.
College/School:College of Social Sciences > Adam Smith Business School > Economics
Journal Name:Journal of International Money and Finance
Publisher:Elsevier Ltd.
ISSN (Online):1873-0639

University Staff: Request a correction | Enlighten Editors: Update this record