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http://dspace.mediu.edu.my:8181/xmlui/handle/10419/18795| Title: | Fundamental and non-fundamental equilibria in the foreign exchange market : a behavioural finance framework |
| Keywords: | G10 F41 F31 ddc:330 exchange rate bounded rationality heterogeneous agents bubbles and crashes complex dynamics basins of attraction Wechselkurs Devisenmarkt Anlageverhalten Portfolio-Management Gleichgewicht Bubbles Theorie |
| Issue Date: | 16-Oct-2013 |
| Publisher: | |
| Description: | We develop a simple model of the exchange rate in which agents optimize their portfolio and use different forecasting rules. They check the profitability of these rules ex post and select the more profitable one. This model produces two kinds of equilibria, a fundamental and a bubble one. In a stochastic environment the model generates a complex dynamics in which bubbles and crashes occur at unpredictable moments. We contrast these ?behavioural? bubbles with ?rational? bubbles. |
| URI: | http://koha.mediu.edu.my:8181/xmlui/handle/10419/18795 |
| Other Identifiers: | http://hdl.handle.net/10419/18795 ppn:484933175 |
| Appears in Collections: | EconStor |
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